Business · Vietnam Bureau
US dollar weakens to 18-month low against Vietnamese dong
Vietnam's central bank continued to lower its daily reference exchange rate, with the dong strengthening to 25,623 VND per US dollar on November 5. The currency has gained ground over successive trading sessions this week.
LSN Vietnam ·
The State Bank of Vietnam set the official daily reference rate at 25,623 VND/USD on Tuesday, marking a 4 dong appreciation from the previous trading day. The movement reflects a broader trend of dong strength observed throughout the early part of the week.
The Vietnamese currency has strengthened consecutively over multiple sessions, with the reference rate declining on November 3 and November 4 before the latest adjustment. The cumulative effect of these daily moves has pushed the US dollar to its lowest level against the dong in approximately 18 months.
The central bank's reference rate serves as a benchmark for foreign exchange trading among Vietnamese banks and financial institutions. Daily adjustments to this rate can reflect shifting market conditions and underlying economic factors influencing currency valuations in the regional financial system.
The dong's recent strength may have implications for Vietnam's export competitiveness and foreign direct investment flows, as currency movements affect the purchasing power dynamics between Vietnam and its major trading partners. Market observers will likely monitor whether the central bank's daily reference rate adjustments signal a sustained policy direction or represent normal fluctuations in currency markets.