Taiwan's New Dollar Shines as Asia's Bright Spot Amid AI Boom

Taiwan's New Taiwan Dollar (NTD) has emerged as one of Asia's most favored currencies, driven by the nation's deep involvement in the AI supply chain, according to a recent analysis by Goldman Sachs.

The AI wave is reshaping currency landscapes across Asia. Goldman Sachs notes that countries heavily integrated into chip and AI supply chains are seeing their currencies outperform those reliant on energy imports. Taiwan, with its strong AI chip exports, is a prime example, contributing to its currency's favorable standing.

Goldman Sachs economists predict that Taiwan's current account surplus could reach 25% of its GDP in 2026, fueled by export growth that has consistently ranged between 40% and 70% year-on-year for most of the current year. Despite the central bank's expected steady interest rate policy, the thriving tech industry and substantial dollar deposits in the market are expected to sustain the NTD's strength.

In contrast, currencies like the South Korean Won also benefit from AI-related semiconductor exports, pushing South Korea's current account surplus to record highs. However, other currencies such as the Thai Baht and Indonesian Rupiah are more susceptible to oil price fluctuations and concerns over economic policy and governance, respectively. The Chinese Yuan is noted as the only major Asian currency to appreciate against the US dollar this year, primarily driven by high-tech manufacturing.