Exchange Rate Calculator

The exchange rate between the New Zealand Dollar (NZD) and the Taiwan Dollar (TWD) has experienced notable fluctuations over the past several months. This report provides an analysis of the recent trends, key influencing factors, and potential future outlooks for the NZD/TWD currency pair.

Recent Exchange Rate Trends

Over the six-month period from September 2024 to March 2025, the NZD/TWD exchange rate exhibited significant volatility. The highest recorded rate was 20.168 TWD per NZD on September 24, 2024, while the lowest was 18.320 TWD per NZD on December 31, 2024. The average exchange rate during this period was approximately 18.952 TWD per NZD. (exchange-rates.org)

In the first quarter of 2025, the exchange rate continued to fluctuate. For instance, on March 14, 2025, the rate stood at 18.9127 TWD per NZD, marking a 0.70% increase from the previous day. (investing.com)

Factors Influencing the NZD/TWD Exchange Rate

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

1. Economic Indicators: Key economic metrics such as GDP growth, inflation rates, and employment figures in both New Zealand and Taiwan have a direct impact on their respective currencies. For example, stronger-than-expected GDP growth in New Zealand can bolster the NZD, while higher inflation rates in Taiwan might weaken the TWD.

2. Interest Rate Differentials: The monetary policies of the Reserve Bank of New Zealand (RBNZ) and the Central Bank of the Republic of China (Taiwan) influence investor decisions. Higher interest rates in New Zealand relative to Taiwan can attract foreign capital, increasing demand for the NZD and appreciating its value against the TWD.

3. Trade Balances: The trade relationship between New Zealand and Taiwan affects currency valuations. A trade surplus in New Zealand indicates higher demand for NZD, potentially strengthening it against the TWD.

4. Global Market Sentiment: As the NZD is often considered a commodity currency, global risk appetite and commodity price trends can influence its value. Conversely, the TWD's performance can be affected by Taiwan's export-driven economy and its integration into global supply chains.

Historical Context and Performance

Analyzing the historical performance of the NZD/TWD exchange rate provides context for recent trends. In 2024, the exchange rate experienced a decline of approximately 3.41%, indicating a depreciation of the NZD relative to the TWD. (exchange-rates.org)

The Trade Weighted Index (TWI), which measures the NZD against a basket of currencies, also reflects these trends. For instance, on March 19, 2025, the TWI was recorded at 68.68, showing a slight increase from 67.75 on March 6, 2025. (rbnz.govt.nz)

Future Outlook

Predicting future exchange rate movements involves considering various economic indicators and potential geopolitical developments. Factors such as anticipated changes in interest rates by the RBNZ or Taiwan's central bank, shifts in trade balances, and global economic conditions will play crucial roles.

Investors and businesses engaged in NZD/TWD transactions should monitor these factors closely. Utilizing hedging strategies and staying informed about economic forecasts can help mitigate risks associated with currency fluctuations.

In conclusion, the NZD/TWD exchange rate has demonstrated considerable variability influenced by a complex interplay of economic indicators, monetary policies, and global market sentiments. A thorough understanding of these factors is essential for making informed financial decisions in the context of this currency pair.