Goldman Sachs is out with its near-term forex outlook
Investing.com -- Bank of America (NYSE:BAC) analysts noted that Taiwan’s non-tech exports will likely face downward pressure in the coming months due to the appreciation of the Taiwan dollar (TWD) and weak demand.
The firm noted that May’s export performance was boosted by strong demand for artificial intelligence, frontloaded orders placed during a tariff reprieve, and concerns about potential future technology restrictions on China.
According to BofA, the full effect of the TWD’s rapid appreciation has not yet been felt because exporters have not sufficiently repriced their goods.
Analysts at the firm maintain their view that the strengthening TWD will deepen the performance divergence between Taiwan’s tech and non-tech sectors. This gap is expected to complicate monetary policy decisions for the central bank.
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