Exchange rate pressure returns

This week, the SBV resumed liquidity injection, albeit at a moderate level, by offsetting matured repo contracts, while USDVND surged. The interbank curve steepened again, with notable declines in actively traded short-term tenors, accompanied by a rise in trading volume. On the global front, the greenback strengthened following developments in the U.S. trade court and renewed tariff rhetoric from the Trump administration. Domestically, USDVND rose sharply amid growing concerns over Trump’s increasingly protectionist trade stance, ahead of the upcoming round of Vietnam–U.S. negotiations, the outcome of which could prove pivotal in shaping Vietnam’s economic and trade outlook in the period ahead.