The Dollar Dips: Central Bank’s Intervention Causes a Stir as Gold Soars

Today (April 11th), the State Bank of Vietnam announced the central exchange rate at 24,923 VND/USD, a significant drop of 41 VND compared to the previous day’s listing. This marks the first decline after six consecutive sessions of increases. With a 5% fluctuation band, the current permissible trading range for commercial banks is from 23,677 to 26,169 VND/USD.

The State Bank of Vietnam’s Trading Center also lowered the buying and selling reference rate by 41 VND each, to 23,727 – 26,119 VND/USD.

In today’s session, the USD exchange rate at commercial banks continued its downward trend. As of 9:30 am, all surveyed banks reported decreases of 70 to 220 VND in both buying and selling rates compared to the same time yesterday. The buying rate for USD is now between 25,450 and 25,620 VND/USD, while the selling rate is between 25,840 and 25,980 VND/USD.

On the black market, as of 9:30 am, the USD was traded at 25,950 – 26,150 VND/USD, with the buying rate dropping by 200 VND and the selling rate falling by 100 VND compared to the same time yesterday.

The sharp decline in domestic USD rates comes amid a weakening US dollar in the international market. The US Dollar Index (DXY), which measures the greenback’s strength against a basket of major currencies, fell to 100.4 as of 9:30 am (Vietnam time). Earlier, the index dropped by nearly 1.9% in the previous session. Since the beginning of April, the DXY has declined by almost 5.6%, and since the start of 2025, it has fallen by nearly 7.6%.

Meanwhile, this morning, gold prices, including gold bars and SJC gold, surged by nearly VND 3 million per tael compared to the previous trading session’s close.

At the opening of today’s trading session, gold bars and SJC gold prices at gold businesses skyrocketed, with an average increase of VND 2.8 million per tael.

As a result, gold bar prices at PNJ, SJC, and DOJI were adjusted to the range of VND 103.4 – 106.4 million per tael.

Similarly, gold jewelry prices also witnessed a strong upward trend. At PNJ, the precious metal is currently trading at VND 101.9 – 105.1 million per tael. SJC and DOJI adjusted their gold jewelry prices to VND 102.4 – 105.6 million and VND 101.4 – 105 million per tael, respectively. Meanwhile, Bao Tin Minh Chau set their gold jewelry prices on par with gold bars at VND 102.5 – 106.4 million per tael.

Domestic gold prices surged after international gold prices continued to soar, surpassing the $3,200 per ounce mark.

The need for safe-haven assets was reinforced as US stock markets plunged and the US dollar weakened. Gold prices surged to new highs as global economic uncertainty heightened due to trade tensions. Recently, the White House announced that, in addition to the previous 20% tariff, the current tariff on Chinese goods stands at 145% after President Trump’s latest 125% increase. This decision was made public on April 9th via social media and took immediate effect. However, the White House clarified that this figure does not include the 20% tariff related to fentanyl that Trump had previously imposed on China.

According to the World Gold Council’s (WGC) latest research, mounting concerns about a potential economic slowdown and rising inflation in the US have prompted investors to shift from a wait-and-see approach to actively investing in gold.

The gold market has witnessed significant capital inflows into gold-backed exchange-traded funds (ETFs) since the beginning of the year. WGC’s March capital flow data revealed a consistent increase across all major regions globally.