Economic Growth: Taiwan and Thailand's economic performance impacts their currencies' value. Strong growth typically strengthens the currency.

Interest Rates: Interest rate differentials between Taiwan and Thailand influence capital flows. Higher rates attract foreign investment, boosting demand for the currency.

Inflation: Inflation erodes purchasing power. Higher inflation relative to the other country can weaken the currency.

Trade Balance: A trade surplus (exports exceeding imports) generally supports a currency, while a deficit can weaken it.

Political Stability: Political instability increases risk, potentially leading to capital flight and currency depreciation.

Global Risk Sentiment: During periods of global uncertainty, investors often seek safe-haven assets, affecting emerging market currencies.

Central Bank Policy: The monetary policy decisions of the central banks in Taiwan and Thailand influence exchange rates.

Speculation: Currency markets are subject to speculation, which can drive short-term price fluctuations.