“June 2nd: VietinBank and Sacombank Push USD Rates Higher, Setting a New Peak for Dollar Value”

The State Bank of Vietnam set the daily reference exchange rate for the US dollar at 24,970 VND/USD on the morning of June 2nd, a decrease of eight VND from the previous week’s close. Prior to this, the State Bank had consecutively increased the reference rate over the last three trading sessions of the previous week, with a total increase of 31 VND, bringing the rate to a record high of 24,978 VND/USD.

With a permitted trading band of 5%, the exchange rate for commercial banks currently stands at 23,722 – 26,219 VND/USD.

The State Bank of Vietnam’s trading arm also adjusted the buying and selling rates downward accordingly, to 23,722 – 26,219 VND/USD.

This morning, commercial banks continued to raise their USD rates, reaching new highs.

As of 9:00 am, Vietcombank, the largest foreign currency trader in the system, listed the USD exchange rate at 25,820 – 26,210 VND/USD, a ten-dong increase in both buying and selling rates compared to the previous week. BIDV also increased rates by ten dong for both buying and selling. Meanwhile, VietinBank significantly raised its buying rate by 152 dong and selling rate by two dong.

In the group of private banks, Techcombank decreased buying and selling rates by five and eight dong, respectively. Eximbank increased the buying rate by 20 dong but decreased the selling rate by eight dong. Sacombank, on the other hand, significantly raised its buying rate by 281 dong and selling rate by 100 dong.

Last week (May 26-30), the interbank exchange rate surged at the end of the week. On May 30, the interbank rate closed at 26,035, a significant increase of 87 dong compared to the previous week’s closing rate.

In the unofficial market, the USD also continued to strengthen. A survey at 9:00 am today showed that the USD was traded at 26,280 – 26,380 VND/USD, with both buying and selling rates increasing by 20 dong compared to yesterday.

The USD/VND exchange rate has returned to its historical high, despite the US dollar remaining at its three-year low in the international market.

The US Dollar Index (DXY), which measures the strength of the greenback against a basket of other major currencies, is hovering around 99.3 points.

The US dollar has been on a downward trend for five months, as traders brace for new uncertainties in the areas of trade and US fiscal health. Currently, the US dollar is about 4% lower than it was on April 2, when President Donald Trump began announcing tariffs, causing foreign investors to flee the US stock and bond markets.

According to MBS Securities, the USD/VND exchange rate has risen despite the greenback’s weakness in the international market, partly due to the State Treasury continuing to buy $110 million from commercial banks in April, limiting foreign currency supply. Moreover, businesses’ demand for foreign currency has increased amid global trade instability.

Additionally, the deep drop in VND interbank interest rates to a 13-month low in April caused the VND-USD interest rate differential to turn sharply negative, putting further pressure on the exchange rate.

MBS experts forecast that the USD/VND exchange rate will fluctuate between 25,500 and 26,000 VND/USD in 2025, as the US dollar is expected to recover due to expansive fiscal policies, high-interest rates, and trade protectionism. These factors are likely to boost the value of the US dollar this year.

Unpredictable tariff policies from the US are also expected to create challenges for Vietnam’s exports and FDI attraction in the coming time and may put pressure on the country’s foreign reserves, which are already modest after the sale of over $9 billion in 2024.

However, positive macroeconomic factors such as trade surplus ($3.79 billion), FDI disbursement ($6.74 billion), and strong international visitor growth (up 23.8% year-on-year) are expected to continue supporting the VND.