
Exchange rate pressure reignites ahead of reciprocal tariffs plan
This week, the SBV shifted to liquidity withdrawal, albeit at a modest level, while USDVND pressure returned. Interbank rates steepened, with short-term rates ticking up while longer-term rates declined. On the global front, the greenback rebounded as the Fed maintained its stance on interest rates. Domestically, USDVND edged up, largely attributed to USD purchases by the VST in recent weeks, combined with continued strong net selling by the foreign bloc on Vietnam’s stock exchange. In the coming weeks, USDVND is expected to remain under pressure as the Trump administration unveils its reciprocal tariff plans, particularly targeting countries with large trade surpluses with the U.S.