Taipei: The New Taiwan dollar (NTD) rose over 4 percent against the U.S. dollar in 2025, marking its largest gains against the greenback in the past five years. On the final trading day of 2025, the U.S. dollar increased by NT$0.01 to close at NT$31.438 against the Taiwan dollar.
According to Focus Taiwan, the U.S. dollar experienced a decline of NT$1.343, or 4.27 percent, from the end of 2024, when it hit a nine-year high of NT$32.781 against the Taiwan dollar. The year began with the Taiwan dollar at approximately NT$32, influenced by concerns over U.S. tariffs. This was followed by a period in May characterized by irrational expectations of currency appreciation.
Notably, on May 2 and May 5, the Taiwan dollar surged against the greenback by over NT$1 on consecutive trading days, nearing a high of NT$29. This prompted the central bank to implement measures to curb speculation driven by hot money. In the latter half of the year, while Taiwan shares reached record highs, capital outflows from foreign institutional investors selling Taiwan stocks led to a weakening of the Taiwan dollar, dropping from NT$29 to around NT$31.5.
Throughout 2025, the Taiwan dollar fluctuated between a high of NT$29 and a low of NT$33 against the U.S. dollar, demonstrating significant volatility. The currency's 4.27 percent rise compared with a 4.38 percent increase for China's renminbi, a 1.80 percent rise for the South Korean won, and a 0.22 percent decrease for the Japanese yen.
Looking ahead to 2026, Cathay United Bank chief economist Lin Chi-chao anticipates the Taiwan dollar will continue to rise intermittently, influenced by U.S. Federal Reserve policy and an increasing number of Taiwanese investing abroad.