The surge in the USD exchange rate has made the appreciation of the New Taiwan Dollar (TWD) a hot topic of discussion recently. This wave of currency fluctuations has sparked widespread interest in the market. Why has TWD appreciated so rapidly? What implications does this have for our daily lives?

On May 2, 2025, the TWD's exchange rate shot up to 31.064 per USD, with a daily increase of 3.07%, marking the largest one-day increase since 2002. This rapid appreciation is primarily attributed to significant foreign capital inflows into the Taiwan stock market, leading to an increase in USD supply and causing TWD to rise. The Central Bank of Taiwan has stated that this trend is not pressured by the US and that they will continue to closely monitor international financial market trends.

The appreciation of TWD means that its value relative to other currencies has increased, allowing for cheaper purchases of imported goods, making overseas products more affordable.

However, experts warn that this wave of appreciation may have effects on housing prices and the economy. While capital inflows could drive up property prices, factors such as industrial hollowing and unemployment could lead to price drops. For the general public, traveling abroad will become cheaper due to TWD appreciation, but all of this requires monitoring future market developments.