Dollar dips to 18-month low against dong

The dollar has reached an 18-month low against the Vietnamese dong, with the exchange rate falling to VND25,990, the lowest point since April 2025. On the black market, the greenback's value dropped even further by 1.64% to VND25,780. Over the past 10 months, the dong has appreciated against the dollar, resulting in savings for those who require foreign currency for travel, studies abroad, or payments on dollar-denominated debts.

Conversely, individuals holding foreign currency or receiving remittances may face losses when converting dollars to dong.

The dollar index, which tracks the U.S. currency against six others, remained steady at 101.88, marking two consecutive months of gains, according to Reuters. Sterling increased by 0.15% to $1.3396, while the Australian dollar rose by 0.09% to $0.70345, both set for monthly gains in October.

Experts anticipate that exchange-rate pressures will continue, as the dollar is expected to strengthen towards the end of the year. Factors such as high oil prices and inflationary pressures are contributing to the Fed's decision to maintain elevated interest rates. UOB analysts echoed a similar opinion, stating that the Fed's September rate hike and the likelihood of two more increases before the first quarter of 2027 would gradually diminish the interest-rate gap between Vietnam and the U.S. This decline in the interest-rate gap could make the exchange rate more susceptible to foreign portfolio investment flows.