Business · Vietnam Bureau
Vietnam dong strengthens as reference exchange rate rebounds
The dong recovered ground on October 2 after three consecutive days of depreciation, with commercial banks also raising their buying and selling rates following the previous trading session's losses.
LSN Vietnam ·
Vietnam's reference exchange rate reversed course on October 2, bouncing back after declining 2 Vietnamese dong on September 29, followed by a further 3-dong drop on September 30 and continued weakness on October 1.
The recovery in the official reference rate was mirrored in the interbank market, where major commercial banks lifted their opening-hour buying and selling rates compared to the previous day's close. The rebound signaled renewed strength in the local currency following a three-day losing streak that had pushed the dong to weaker levels.
The movement reflects typical volatility in Vietnam's foreign exchange market, where the reference rate set by the State Bank of Vietnam serves as a benchmark for daily trading. Banks adjust their retail rates based on market conditions and the official guidance, with the October 2 recovery suggesting improved demand for the domestic currency or reduced dollar buying pressure.
The exchange rate movements carry significance for Vietnam's economy, influencing import and export competitiveness, foreign direct investment flows, and inflation expectations. The recent volatility underscores the importance of monitoring short-term currency fluctuations alongside broader economic indicators.