USD/TWD to hit the 32.10 mark by year-end – MUFG

USD/TWD is trading slightly below the 32 level. Economists at MUFG Bank the pair to reach 32.10 by the end of the year. 

Modest pick-up in China’s growth momentum might limit TWD’s depreciation

“In Q4, the TWD is likely to be weighted by a stronger dollar, weaker exports growth and a potential softer electronic industry activity.” 

“Global growth concerns and geopolitical tensions will continue to hurt market sentiment and prompt persistent capital outflows, pressuring on TWD to the downside. However, the modest pick-up in China’s growth momentum in Q4 might limit the degree of TWD’s depreciation, as it is the largest export destination of Taiwan products.”

“We see USD/TWD to reach 32.10 by the end of 2022.”