Vietcombank's Dollar Sale Hits Record High

Vietcombank has reported selling the dollar at VND25,777, marking a 0.3% increase from Tuesday and reaching an all-time high. Meanwhile, on the black market, the greenback slightly decreased by 0.04% to VND25,750.

State Bank of Vietnam Adjusts Reference Rate

The State Bank of Vietnam has increased its reference rate by 0.11% to VND24,550. This adjustment comes as the dollar has seen a 1.89% gain against the dong this month alone.

Global Market Reactions

Globally, the dollar's rally, driven by tariff concerns, paused on Wednesday, with modest slips against most major currencies except the yen. The euro and sterling saw slight increases, while the yen fell more than 0.5% against the dollar.

International Condemnation of US Tariffs

Overnight, the European Union, Mexico, and Canada have condemned Donald Trump's decision to impose 25% tariffs on steel and aluminium imports. European Commission head Ursula von der Leyen hinted at counter-measures in response.

Federal Reserve's Stance on Interest Rates

Federal Reserve Chair Jerome Powell, in his testimony to Congress, reiterated the Fed's stance on not rushing to lower interest rates, despite global market tensions and tariff implications.

Emerging Market Currencies Under Pressure

The Mexican peso and other emerging market currencies remain under pressure, nearing recent lows. Vietnam's dong is particularly squeezed by concerns over a significant trade surplus with the U.S. and substantial trade flows from China, which could potentially invite tariffs.