The USD/VND exchange rate is currently bearish, as the U.S. dollar struggles near 90-day lows.
Key drivers influencing this trend include:
- The anticipated three rate cuts by the Federal Reserve by mid-2026, likely weakening the USD.
- Vietnam's economic growth target of at least 10% for 2026, indicating strong domestic momentum.
- Improved projections for inflation in Vietnam, suggesting price stability, which bolsters confidence in the VND.
In the near term, the exchange rate is expected to trade in a narrow range influenced by ongoing economic developments.
Upside risks include stronger-than-expected U.S. economic indicators which could support the USD. Conversely, a negative outcome from Vietnam’s legislative elections could impact investor sentiment and pressure the VND.
Recent data shows the USD/VND just below its three-month average, indicating stability in this exchange rate despite the overall bearish outlook for the dollar.