Vietnam's dong strengthens as central bank lowers USD reference rate

The State Bank of Vietnam's reference rate depreciated by 10 VND on November 10, marking another decline in the value of the US dollar against the Vietnamese dong. The official midpoint rate was fixed at 25,600 VND per US dollar, down from 25,610 VND the previous trading day.

The downward movement extends a broader weakening pattern for the greenback in the Vietnamese foreign exchange market. Earlier this week, the reference rate had declined by 5 VND on Monday, November 6, signaling sustained pressure on dollar valuations at the start of the trading period.

The persistent decline in the USD reference rate reflects the dollar's broader softness in Asian currency markets. Vietnamese commercial banks have reported that the US dollar has touched 18-month lows, indicating a significant shift in currency dynamics that has benefited the dong.

The State Bank's daily reference rate serves as a benchmark for foreign exchange transactions across Vietnam's banking system. The recent depreciation of the reference rate suggests continued dollar weakness against regional currencies, though actual interbank rates may fluctuate within the central bank's prescribed trading band.