VND/USD exchange rate hits record high despite weakening USD

(QNgTV) - Many currencies in the world have recovered well, but VND still depreciated about 2.7 - 2.8% compared to USD. According to the State Bank, the reason is that Vietnam maintains low interest rates to support economic growth.

State Bank explains the reason for the increase in exchange rate when the world USD decreases

Regarding the banking performance in the first 6 months of 2025, the State Bank said: Since the beginning of the year, due to rapid changes in US policies including tax policies, fiscal policies and monetary policies, the USD Index (DXY) - measuring the strength of the USD - has decreased by more than 10% at times. Many currencies in the world have recovered well, but VND still depreciated by about 2.7 - 2.8% compared to USD.

The main reason comes from Vietnam maintaining low interest rates to support economic growth. When maintaining low interest rates, the interest rate difference between VND and USD will be negative and then USD will become more attractive in the currency market, the balance of foreign currency supply and demand will fluctuate, credit institutions will have the behavior of holding currencies with higher interest rates.

Source: https://quangngaitv.vn/ty-gia-vnd-usd-tang-ky-luc-du-usd-suy-yeu-6504710.html