“The exchange rate between the U.S. dollar and Vietnam dong has surged, reaching a peak last seen in June 2024/ immediately after the U.S. Federal Reserve announced an interest rate cut of 25 basic points in December 2024.
Simultaneously, the FED signaled a slower- than expected pace of rate reductions. Consequently, the U.S. Dollar Index (DXY) climbed above 108 points, making its highest level since 2023, putting significant pressure on the Vietnam dong.
In response, the State Bank of Vietnam (SBV) intervened by selling about US$1.8 billion from foreign exchange reserves over a few days.” – The Saigon Time
Source: Forex Management On Edge
Forex Management On Edge
