Exchange Rate Calculator

The exchange rate between the New Taiwan Dollar (TWD) and the Swedish Krona (SEK) has experienced notable fluctuations over the past several months. This report provides an analysis of the TWD/SEK exchange rate trends, examining historical data, identifying key factors influencing these movements, and offering insights into potential future developments.

Historical Exchange Rate Trends

2024 Overview

In 2024, the TWD/SEK exchange rate exhibited a general upward trend. The highest rate was recorded on December 25, 2024, at 1 TWD = 0.3409 SEK, while the lowest was on August 20, 2024, at 1 TWD = 0.3142 SEK. The average exchange rate for the year stood at 1 TWD = 0.3294 SEK. This indicates a 2.90% appreciation of the TWD against the SEK over the year. (exchange-rates.org)

Early 2025 Developments

In the initial months of 2025, the TWD/SEK exchange rate continued to show variability. The highest rate during this period was on January 7, 2025, at 1 TWD = 0.3395 SEK, with the lowest on January 6, 2025, at 1 TWD = 0.3374 SEK. The average exchange rate for January 2025 was 1 TWD = 0.3386 SEK. (exchange-rates.org)

Factors Influencing Exchange Rate Movements

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

1. Economic Indicators: Key economic metrics such as GDP growth, inflation rates, and interest rates in both Taiwan and Sweden significantly impact their respective currencies. For instance, if Taiwan's economy grows at a faster pace than Sweden's, the TWD may strengthen against the SEK.

2. Geopolitical Events: Political stability, trade agreements, and international relations can influence investor confidence and currency valuations. Any geopolitical tensions or agreements involving Taiwan or Sweden can lead to exchange rate volatility.

3. Central Bank Policies: Decisions made by the central banks of Taiwan and Sweden, including changes in interest rates or monetary policies, directly affect currency strength. For example, if the Central Bank of Sweden raises interest rates while Taiwan's central bank maintains or lowers them, the SEK might appreciate against the TWD.

Recent Trends and Analysis

Late 2024 to Early 2025

The latter part of 2024 saw the TWD appreciating against the SEK, reaching its peak in December. This trend continued into early 2025, with the exchange rate remaining relatively high. Several factors may have contributed to this:

• Taiwan's Economic Performance: Taiwan's robust export sector, particularly in technology and manufacturing, likely bolstered the TWD. Strong demand for Taiwanese products can increase demand for the TWD, leading to its appreciation.

• Sweden's Economic Conditions: If Sweden experienced slower economic growth or faced challenges such as higher inflation rates, the SEK could weaken relative to the TWD.

February 2025

In February 2025, the TWD/SEK exchange rate experienced slight fluctuations. For example, on February 27, 2025, the rate was 1 TWD = 0.3247 SEK, slightly lower than the January average. (statsskuld.se)

Future Outlook

Predicting future exchange rate movements involves considerable uncertainty due to the multitude of influencing factors. However, several considerations can provide insight:

• Economic Forecasts: If Taiwan's economy continues to outperform Sweden's, the TWD may maintain its strength against the SEK. Conversely, if Sweden implements effective economic policies leading to growth, the SEK could appreciate.

• Monetary Policies: Future decisions by the central banks regarding interest rates and monetary policies will be crucial. Any divergence in policy directions between the two countries can lead to exchange rate adjustments.

• Global Economic Conditions: External factors such as global trade dynamics, commodity prices, and international financial market trends will also play a role in determining the TWD/SEK exchange rate.

Conclusion

The TWD/SEK exchange rate has shown significant variability over the past several months, influenced by a complex interplay of economic indicators, geopolitical events, and monetary policies. While recent trends have seen the TWD appreciating against the SEK, future movements will depend on the evolving economic landscapes of both Taiwan and Sweden, as well as broader global economic conditions. Stakeholders should closely monitor these factors to make informed decisions regarding currency-related matters.