SBV continues liquidity injection amid surging DXY

This week, the SBV lowered liquidity injections as pressures within the banking system eased, while the exchange rate edged up slightly. Specifically, the interbank yield curve saw a sharp decline in short tenors, signaling easing liquidity conditions in the interbank market this week. In the FX market, the USDVND exchange rate continued its upward trend as the DXY maintained its momentum, supported by anticipated policies from Donald Trump, which are expected to boost investment channels such as the stock market and cryptocurrencies, notably attracting attention to Bitcoin. Looking ahead, USDVND is expected to face upward pressure from a stronger DXY driven by various factors. However, we maintain an optimistic outlook for the near future, bolstered by a substantial trade surplus and anticipated year-end remittances, both of which are key contributors to exchange rate stability.