Vietnam's Currency Market Adjusts

Vietcombank has adjusted its selling rate of the U.S. dollar to VND25,880, marking a 0.35% decrease from the previous day. Similarly, the black market witnessed a 0.42% drop, with the dollar valued at VND26,120.

State Bank of Vietnam's Strategic Move

The State Bank of Vietnam has strategically reduced its reference rate by 0.16%, setting it at VND24,923, signaling a shift in the country's monetary policy.

Global Dollar Decline

The dollar's value has seen a significant downturn globally, amidst a chaotic bond selloff. This trend is attributed to the escalating fears of a deep recession and the shaken investor confidence in U.S. assets, as reported by Reuters.

Safe Havens in Demand

The current market anxiety has led investors to flock towards safe havens, notably the Swiss franc, which has reached a decade-high against the dollar. This surge follows U.S. President Donald Trump's decision to temporarily lower tariffs on numerous countries.

Impact on Emerging Markets

The dollar's decline has offered some respite to emerging market currencies, including the ringgit, as the dollar index falls below 100 for the first time since July 2023.