The exchange rate forecast for GBP to VND indicates a cautious outlook as various economic factors weigh on the British pound. In recent updates, analysts have noted that the GBP remains largely sidelined due to uncertainties surrounding the upcoming UK autumn budget and concerns over potential interest rate cuts from the Bank of England (BoE). As of now, the GBP is trading at 34,526 VND, which is approximately 2.0% below its three-month average of 35,223 VND, reflecting a stable trading range of 5.1% within 34,259 to 36,001 VND.
Investor sentiment has turned negative ahead of the UK's budget reveal on November 26, exacerbated by fears of fiscal shortfalls and possible tax hikes. The Office for Budget Responsibility (OBR) has said that a productivity forecast revision could lead to a £20 billion budget gap. This, coupled with stagnant retail sales and moderating private sector growth expectations, could further depress the pound's value against the Vietnamese đồng.
Experts are also noting a broader trend impacting the GBP: expectations are mounting that the BoE may reduce interest rates soon, further diminishing the currency's attractiveness in the foreign exchange markets. Reports indicate that the pound has weakened against other major currencies, including reaching a low against the Euro not seen in over two years.
On the other hand, the Vietnamese đồng (VND) is also facing pressures. Forecasts suggest that the VND may depreciate by approximately 3% against the US dollar, influenced by a strong dollar and external economic policies. Recent interventions by the State Bank of Vietnam, including selling approximately $1.5 billion to stabilize the currency, have been mentioned. Additionally, trade tariffs imposed by the U.S. have created challenges for the VND, necessitating adjustments to maintain export competitiveness.
In summary, the outlook for GBP to VND exchange rates appears to be characterized by uncertainties in the UK concerning fiscal policy and interest rates, while the VND also faces challenges related to depreciation forecasts and external pressures. Investors and businesses involved in international transactions should remain vigilant given the current market dynamics and economic indicators to optimize their currency exchange strategies.
