DNVN - On March 6, 2025, the US dollar slipped to its lowest level in three months as trade tensions between the US and its partners continued to escalate.
The Dollar Index (DXY), which reflects the value of the US dollar against six major currencies including EUR, JPY, GBP, CAD, SEK, and CHF, reached 104.56, down 1.74 points from March 5, 2025.
According to Reuters, the US dollar weakened amid escalating trade tensions between the US and its partners, while Germany undertook a major overhaul of its debt policy, leading to the country's largest bond sell-off since the late 1990s.
In addition to factors related to tariffs and changes in fiscal policy in Germany, investors are also focusing on the annual session of China's parliament, where Beijing continues to maintain its economic growth target of around 5% in 2025.
The euro rose to its highest level in four months, while European stocks surged. However, the German long-term government bond market suffered heavy losses, experiencing its worst trading day in over 25 years due to a sharp increase in yields.
In a significant development, German officials have agreed on a €500 billion (equivalent to $534.75 billion) infrastructure package and proposed major reforms to borrowing limits – a move analysts consider a major turning point.
"Last night, Germany announced plans to implement one of the biggest financial regime changes in post-war history, perhaps with its only rival being the reunification of the country 35 years ago," commented Jim Reid, strategist at Deutsche Bank.
He emphasized: "Everything you thought you knew about Germany's economic outlook three months ago, or even three weeks ago, should be erased, and you should start analyzing it from scratch."
German 30-year bond yields – the interest rate the government pays to raise long-term capital – rose by nearly 0.25 percentage points in early trading, marking their sharpest increase since October 1998.
The yield on Germany's 30-year Treasury bonds recently edged up 20 basis points to 3.03%.
"It's an acknowledgment that something has changed. Germany is the benchmark against which all other markets are judged. And therefore, this major shift in German fiscal policy is significant. We are far from worrying about Germany's financial problems. People have been begging Germany to spend for the past 20 years," said Dario Perkins, global macro-management director at TS Lombard.
Long-term bond yields in other countries also rose in line with this trend, with the yield on 30-year French bonds surging to 4.0%, up 15 basis points, while 30-year Italian bonds recorded a yield of 4.517%, up 17 basis points.
The European stock market's STOXX 600 index surged by 1.2%, reaching a new high. Forecasts of increased security spending have fueled a sharp rise in defense stocks across the region over the past month.
Domestic USD exchange rate
In the domestic market, at the opening of trading on March 6th, the State Bank of Vietnam adjusted the central exchange rate of VND against USD down by 5 dong, to 24,750 dong.
The reference buying and selling rates at the State Bank of Vietnam's exchange floor also decreased slightly, currently standing at 23,563 VND - 25,937 VND.
Specifically, at Vietcombank , the listed USD exchange rate was 25,290 - 25,680 VND/USD, a decrease of 70 VND in both buying and selling rates compared to the previous session.
LPBank and OceanBank are buying USD cash at a minimum price of 25,222 VND/USD, while the minimum price for transfers is 25,232 VND/USD.
Conversely, HSBC Bank offered the highest cash USD buying rate at 25,447 VND/USD, while VietinBank listed the highest transfer buying rate at 25,723 VND/USD.
On the selling side, LPBank and OceanBank are applying the lowest cash selling price at 25,483 VND/USD, while OCB maintains the lowest transfer selling price at 25,660 VND/USD.
Saigonbank listed the highest cash USD selling price at 25,800 VND/USD, while SCB had the highest transfer selling price at 25,750 VND/USD.
The Euro exchange rate at the State Bank of Vietnam's exchange desk adjusted slightly upwards, currently at 24,968 VND - 27,596 VND.
The Japanese Yen exchange rate at the State Bank of Vietnam's exchange desk decreased slightly, fluctuating between 157 and 173 dong.
Viet Anh (compiled)
Source: https://doanhnghiepvn.vn/kinh-te/gia-ngoai-te-ngay-6-3-2025-usd-mat-gia-manh-index-giam-xuong-104/20250306083446365
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