Exchange Rate Calculator

The exchange rate between the Indian Rupee (INR) and the New Taiwan Dollar (TWD) has exhibited notable fluctuations over the past few months. This report provides an analysis of the recent trends, underlying factors influencing these movements, and potential future outlooks.

Recent Exchange Rate Trends

In early January 2025, the INR/TWD exchange rate was approximately 0.3827, with the highest rate for the month reaching 0.3841 on January 10. Throughout January, the rate remained relatively stable, averaging around 0.3808.

February 2025 saw a slight decline, with the exchange rate reaching its lowest point of 0.3741 on February 7. The average rate for February was 0.3770, indicating a modest depreciation of the Indian Rupee against the New Taiwan Dollar.

In March 2025, the exchange rate experienced minor fluctuations, with rates ranging from 0.3764 to 0.3795. By mid-March, the rate stabilized around 0.3788.

Factors Influencing Exchange Rate Movements

Several factors have contributed to the observed fluctuations in the INR/TWD exchange rate:

1. Economic Indicators: India's economic performance, including GDP growth, inflation rates, and trade balances, directly impacts the strength of the Rupee. Similarly, Taiwan's export-driven economy, particularly its technology sector, influences the value of the TWD.

2. Monetary Policies: Decisions by the Reserve Bank of India (RBI) and the Central Bank of the Republic of China (Taiwan) regarding interest rates and monetary policies affect investor confidence and capital flows, thereby impacting exchange rates.

3. Global Market Sentiment: External factors such as geopolitical tensions, global economic conditions, and investor risk appetite can lead to currency volatility.

4. Trade Relations: Bilateral trade volumes between India and Taiwan, as well as each country's trade relationships with other nations, can influence demand and supply dynamics for their respective currencies.

Future Outlook

Forecasts suggest a potential appreciation of the INR against the TWD in the coming months. For instance, projections indicate that the exchange rate could increase by approximately 2.69% over the next month, rising from the current rate of 0.38769 to 0.398113. This bullish sentiment is supported by technical indicators such as the 50-day and 200-day simple moving averages, which are currently at 0.379544 and 0.381364, respectively.

However, it's essential to consider that exchange rate forecasts are subject to uncertainties, including unforeseen economic developments, policy changes, and global market dynamics. Investors and businesses engaged in INR/TWD transactions should monitor these factors closely and consider hedging strategies to mitigate potential risks.

Conclusion

The INR/TWD exchange rate has experienced moderate fluctuations over the past few months, influenced by a combination of economic indicators, monetary policies, and global market sentiments. While current forecasts indicate a potential appreciation of the Indian Rupee against the New Taiwan Dollar, stakeholders should remain vigilant and adaptable to changing economic conditions.