The USD to VND exchange rate shows a bearish bias as the USD approaches 90-day lows near 26,264, slightly below its three-month average.
Key drivers include the anticipated Federal Reserve interest rate cuts that could weaken the USD and the robust economic growth targets set by Vietnam's National Assembly, aiming for at least 10% GDP growth in 2026. Furthermore, Vietnam's stable inflation projections, expected to hover around 4.5%, support a favorable outlook for the VND.
Expect the USD/VND exchange rate to maintain a range that could see USD weakening further in the near term. The outlook suggests trading could remain within a modest range as developments unfold.
Upside risks include stronger-than-expected US economic data, which could bolster the USD. On the downside, ASEAN's plans to diminish reliance on the USD for trade may pressure the currency further, thus impacting the exchange rate negatively.
