After many consecutive sessions of net withdrawal, the State Bank of Vietnam (SBV) last week net injected more than VND5.09 trillion (US$199.7 million) through the open market operation (OMO) and bill channels to support liquidity in the banking system.

The USD/VND exchange rate remains under pressure as ongoing trade tensions push the USD higher.

A strong US dollar will still be a major factor influencing the USD/VND exchange rate in 2025, causing the Vietnamese dong to depreciate by about 3% against the dollar, experts forecast.

The latest US Federal Reserve (Fed)’s announcement to make fewer interest rate cut next year immediately impacted the USD/VND exchange rate.

The USD/VND exchange rate is not forecast to be under great pressure at the end of this year, if the US Federal Reserve (Fed) continues to cut interest rates at its meeting this month, experts said.

It will be difficult for the State Bank of Vietnam (SBV) to further loosen monetary policy due to a rising USD/VND exchange rate pressure, experts said.

The move came as the dollar index (DXY) hovered around a four-month high of more than 105, with the market welcoming Donald Trump's victory in the US presidential election.

The US dollar may further strengthen against the Vietnamese dong to hit VND25,400 per dollar at the end of this month, according to experts.

After cooling down in August 2024 and bottoming out at the end of September, the USD/VND exchange rate has shown signs of increasing again since the beginning of October.

With a sharp depreciation of the US dollar against the Vietnamese dong, the State Treasury has continuously bought large amounts of the greenback from commercial banks.