The GBP to VND exchange rate has recently experienced downward pressure, primarily driven by negative sentiment surrounding the UK economy and potential monetary policy shifts. Analysts note that the pound weakened after the release of a disappointing UK jobs report, which showed unemployment rising to a four-year high of 5%. This data has fueled expectations of an interest rate cut from the Bank of England (BoE) at its upcoming meeting in December. BoE Chief Economist Huw Pill's forthcoming speech is highly anticipated, as his tone on the economy could significantly influence GBP's value.
Furthermore, with the UK budget announcement set for November 26, concerns over potential fiscal shortcomings are adding to the pound's vulnerability. The Office for Budget Responsibility is projected to revise productivity forecasts downward, suggesting a £20 billion budget shortfall. Consequently, market participants are exhibiting a bearish outlook on the pound, reflected in its trading near multi-month lows against major currencies.
In contrast, the Vietnamese Đồng is facing its challenges as well. Experts predict a depreciation of approximately 3% against the US dollar in 2025, attributing this to a strengthening dollar and global economic factors. To combat the depreciation pressures, the State Bank of Vietnam has intervened actively in the currency markets. Following a recent rate cut by the US Federal Reserve in September, the VND has experienced some relief, allowing the Central Bank to stabilize the currency amidst ongoing trade tensions and external pressures.
Current data indicates that the GBP to VND exchange rate stands at 34,604, which is notably 2.0% below its three-month average of 35,323. The exchange rate has demonstrated relative stability within a 5.1% range, trading between 34,259 and 36,001. As external developments influence both currencies, continued close monitoring of economic indicators and central bank actions will be essential for businesses and individuals involved in international transactions.
