Vietnam dong hovers near historic low as greenback strengthens

[HO CHI MINH CITY] The US dollar hit a peak against the Vietnamese dong on hawkish expectations over the US Federal Reserve’s rate trajectory. While the greenback pulled back a tad on Thursday (Apr 4), analysts expect the pressure to persist for the dong given the wide interest rate differential and recent political developments.

On the other hand, within-target inflation rates in South-east Asia’s fastest growing economy could also see the currency gain some ground, pundits said.

The USD/VND spot rate hit 24,935 on Tuesday, breaking the previous record in November 2022, according to prices from banks compiled by Bloomberg. The pair traded up to a new all-time high of 25,010 on Wednesday, with the Vietnamese currency recording a 3 per cent depreciation since the start of the year.