The EUR to VND exchange rate has recently experienced upward momentum, currently positioned at 60-day highs near 30,914 VND. This reflects a modest increase of 0.7% above its three-month average of 30,687 VND, with the exchange rate remaining stable within a 3.6% range over recent months.
Analysts suggest that the euro has benefitted from a prevailing weakness in the US dollar, which underscores a larger trend of policy divergence between the European Central Bank (ECB) and the Federal Reserve. Experts anticipate that any future movements in the euro will largely hinge on macroeconomic indicators and shifts in market sentiment, particularly following recent upticks in eurozone inflation. ECB officials have acknowledged unexpected rises in inflation, which may prompt the Bank to maintain a steady monetary policy into 2026.
The ongoing geopolitical tensions stemming from the war in Ukraine continue to impact the euro, adding layers of complexity to its stability and performance. Sanctions and economic repercussions are paramount, influencing investor confidence and the currency's valuation. Furthermore, fluctuations in the oil market, with current crude prices around $61.55 per barrel—4.5% below a three-month average—could also interplay with the euro's strength, especially as oil prices typically affect broader economic conditions.
Within the context of the Vietnamese đồng (VND), predictions indicate a potential depreciation of approximately 3% against the US dollar in 2025, which may indirectly influence EUR/VND dynamics as well. Furthermore, recent developments in Vietnam, including regulations on cryptocurrency and the implications of severe flooding leading to economic losses, could further add volatility to the VND.
As the eurozone continues to navigate challenges related to inflation and geopolitical factors, market participants are advised to keep a close watch on ECB policy developments and how these may affect the EUR/VND exchange rate going forward. The interplay between eurozone economic indicators and the VND's performance in the face of expected depreciation provides a critical backdrop for any international transactions involving these currencies.
