Dollar dips to 18-month low against dong

The U.S. dollar fell to the lowest since April 2025 against the Vietnamese dong Saturday.

Vietcombank lowered its rate by 1% to VND25,990, lowest since April 2025. On the black market the greenback plunged 1.64% to VND25,780.

Bank exchange rates are now about 1.5% lower than at the start of the year, meaning the dong has appreciated against the dollar over the past 10 months.

As a result, people who need to buy foreign currency for travel, overseas study or dollar-denominated debt payments will spend less. Those holding foreign currency or receiving remittances, however, may lose out when converting dollars into dong.

Globally the dollar index, which tracks the ⁠U.S. currency against six others, was flat at 101.88. It is set for a second straight month of gains, according to Reuters.

Sterling strengthened 0.15% to $1.3396. The Australian dollar strengthened 0.09% versus the greenback to $0.70345. Both currencies were on track for an October monthly gain.

Analysts at MB Securities said exchange-rate pressures are likely to persist, as the dollar is expected to strengthen in the final months of the year.

High oil prices are adding to inflationary pressure and reinforcing expectations that the U.S. Federal Reserve will keep interest rates elevated.

Lender UOB analysts shared a similar view, saying the Fed’s rate hike in September and the possibility of two further increases before the first quarter of 2027 would gradually narrow the interest-rate gap between Vietnam and the U.S., making the exchange rate more vulnerable to foreign portfolio investment flows.