Vietnam dong hits record low as US dollar strengthens

The central bank set the official mid-point rate at VND25,263 per dollar, up VND8 from the previous day and the highest on record.

With a +/-5-percent trading band, commercial banks were allowed to quote rates between VND24,000 and VND26,526 to the dollar.

State-owned VietinBank sold the greenback at the ceiling level of VND26,526, while buying at VND26,045.

Sacombank quoted VND26,525 for selling and VND26,265 for buying.

Vietcombank raised its selling price by VND70 to VND26,520, and bought at VND26,140.

BIDV quoted VND26,520 for selling, and VND26,160 for buying.

In the unofficial market, the dollar changed hands at VND26,649, a VND123 premium over official bank rates.

The dong has fallen for three consecutive sessions, tracking a stronger greenback globally as investors seek safe-haven assets amid heightened geopolitical tensions.

“The likelihood of U.S. interest rates staying elevated through the rest of 2025 remains high,” said Dinh Duc Quang, country head of global markets at UOB Vietnam.

He added that the trend is exerting continued pressure on the dong and complicating domestic monetary policy.

The high dollar rates have dimmed expectations of local rate cuts, which the government had hoped would support credit growth and help achieve its 2025 gross domestic product (GDP) growth target of over eight percent.

“Elevated U.S. yields are attracting dollar holdings globally, which may limit room for Vietnam to stabilize the USD/VND exchange rate or boost foreign reserves,” Quang said.

He noted that UOB expects the central bank to maintain current policy rates for the Vietnamese dong in the short term, while monitoring macroeconomic indicators and the impact of new tariff policies that took effect on August 1.

Earlier, the central bank's governor Nguyen Thi Hong acknowledged that exchange rate management in 2025 would face significant pressure, citing both external economic shifts and domestic sentiment.