Exchange Rate Calculator

The exchange rate between the New Taiwan Dollar (TWD) and the South Korean Won (KRW) has experienced notable fluctuations over the past few months. This report provides an analysis of the TWD/KRW exchange rate trends, examining historical data, recent movements, and the factors influencing these changes.

Historical Exchange Rate Overview

Over the past few years, the TWD/KRW exchange rate has exhibited a general upward trend, indicating a strengthening of the TWD relative to the KRW. In 2024, the exchange rate ranged from a low of 41.321 KRW per TWD on September 18 to a high of 45.134 KRW per TWD on December 31, with an average rate of 42.466 KRW per TWD for the year. This represents a 6.98% increase in the TWD's value against the KRW over the year.

In 2025, the exchange rate continued to rise, reaching its highest point of 45.068 KRW per TWD on January 1. The average exchange rate for 2025 up to March 2 was 44.144 KRW per TWD, with a low of 43.597 KRW per TWD on February 25.

Recent Exchange Rate Movements

Focusing on the most recent data, the TWD/KRW exchange rate has shown some volatility. For instance, on February 28, 2025, the exchange rate closed at 44.369 KRW per TWD, marking a 0.84% increase from the previous day.

Factors Influencing the Exchange Rate

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

1. Economic Indicators: Differences in economic performance between Taiwan and South Korea, such as GDP growth rates, inflation, and employment figures, can influence investor confidence and currency demand.

2. Interest Rate Differentials: Variations in interest rates set by the central banks of Taiwan and South Korea affect capital flows. Higher interest rates in one country can attract foreign investment, increasing demand for that country's currency.

3. Trade Balances: The trade relationship between Taiwan and South Korea impacts currency values. A trade surplus in Taiwan, for example, increases demand for the TWD, potentially strengthening it against the KRW.

4. Geopolitical Events: Political stability, policy changes, and international relations can lead to currency fluctuations. Events affecting either country can influence investor sentiment and currency valuations.

Conclusion

The TWD/KRW exchange rate has experienced an upward trend over the past few years, with notable fluctuations influenced by economic indicators, interest rate differentials, trade balances, and geopolitical events. Understanding these factors is crucial for businesses and investors engaged in activities involving both currencies. Continuous monitoring of economic developments and policy changes in Taiwan and South Korea will provide better insights into future exchange rate movements.