Vietnam Dong Gains Slightly as Greenback Softens Ahead of Fed Meeting

Vietnam’s currency edged up slightly against the U.S. dollar on Wednesday, reflecting cautious optimism in the domestic market and growing investor anxiety about the global economic outlook.

VND Strengthens on Both Official and Unofficial Markets

Vietcombank, Vietnam’s largest state-owned lender, quoted the dollar at VND26,140, down 0.04% from Tuesday. On the unofficial market, the greenback slipped 0.11% to VND26,500, signaling a mild retreat in demand.

Meanwhile, the State Bank of Vietnam (SBV) adjusted its reference rate down 0.03% to VND24,930, maintaining a strategy of gradual currency stabilization amid regional volatility and shifting capital flows.

Dollar Under Pressure Globally

The dip in Vietnam’s dollar exchange rates mirrors broader trends. Globally, the U.S. dollar remained soft ahead of a pivotal Federal Reserve policy meeting, where investors are eagerly watching for signals about interest rate direction amid ongoing concerns over slowing U.S. growth and sticky inflation.

The dollar index held steady after declining for three consecutive sessions, while the euro edged down 0.2% to $1.1338. In Asia, the Japanese yen lost 0.5%, snapping a three-day rally as Japanese markets reopened after a holiday. The Hong Kong dollar also moved modestly away from the strong end of its currency peg.

Analysts say uncertainty continues to weigh on the greenback. “We’re seeing a micro bounce in the dollar ahead of trade talks, but the broader narrative is still one of weakness,” said Tony Sycamore, market analyst at IG. “There’s a real question among international investors about whether they want to remain overweight in U.S. equities.”

Vietnam Holds Steady Amid Global Shifts

Vietnam’s central bank has so far managed to walk a fine line—keeping the dong relatively stable while supporting export competitiveness and mitigating inflation risks. The gradual appreciation of the VND also signals growing confidence in the country’s economic fundamentals and currency management, even as global capital flows remain uncertain.

With external headwinds—from tightening global liquidity to rising geopolitical tensions—Vietnamese policymakers are expected to maintain a cautious but flexible approach to forex policy in the coming months.

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Source: Vietnam Insider