On April 4, 2025, the foreign exchange market witnessed significant fluctuations as the US dollar (USD) experienced a notable decline against major currencies, amid rising concerns over President Donald Trump's newly announced tariffs. Agribank updated its exchange rates at 13:30, reflecting these shifts.
The latest rates for the USD at Agribank were reported as follows: buying cash at 25,590 VND, buying transfer at 25,600 VND, and selling at 25,940 VND. Meanwhile, the State Bank of Vietnam announced a central exchange rate of 23,854 VND against the USD, which was an increase of 3 VND compared to the previous day.
Commercial banks in Vietnam adjusted their USD rates as well. Vietcombank reported a buying rate of 25,590 VND and a selling rate of 25,980 VND, while Vietinbank's rates were 25,445 VND for buying and 26,025 VND for selling. BIDV's rates stood at 25,635 VND for buying and 25,995 VND for selling.
In the broader context, the US Dollar Index (DXY), which measures the dollar's strength against a basket of six major currencies, fell by 1.87% to 101.94. This decline marks the lowest point for the USD in six months against the Euro and Japanese Yen. Investors are grappling with the implications of Trump's tariffs, which have sent shockwaves through global markets, causing stocks to plummet.
Trump's announcement of "stricter" tariffs on imports has raised alarms among investors. The tariffs include a staggering 34% on imports from China, 20% on goods from the European Union, and 25% on South Korean products. Japan faces a 24% tariff, while imports from Taiwan will be taxed at 32%, and those from Vietnam will see a hefty 46% tariff. Other nations such as the United Kingdom, Australia, and Brazil will be subject to a 10% tariff.
The immediate reaction in the markets has been one of caution. Investors are increasingly shifting their assets into safer havens such as currencies, bonds, and gold, amid fears that these tariffs could lead to a significant global economic downturn and rising inflation.
In a contrasting development, the Euro reached its highest level in six months, rising by 1.74% to 1.1037 USD, marking the largest daily increase since November 2022. The USD also fell by 1.95% against the Japanese Yen, trading at 146.445 Yen, and decreased by 2.35% against the Swiss Franc, now at 0.8608 Franc.
As the markets react to these developments, analysts are closely monitoring economic indicators, particularly the upcoming non-farm payrolls report, which is expected to provide insights into the labor market and the Federal Reserve's interest rate policy. Recent data indicated that the US service sector slowed to its lowest level in nine months in March, raising concerns about the economy's overall health.
Despite the negative sentiment surrounding the USD, the number of Americans filing for new unemployment benefits has decreased, suggesting some stability in the labor market. This dichotomy in data presents a complex picture for investors, who are trying to navigate the implications of Trump's trade policies.
In the domestic market, the reference exchange rate at the State Bank's Exchange was slightly adjusted to 23,662 - 26,046 VND/USD. The EUR exchange rate also saw a minor increase, currently at 25,721 VND for buying and 28,428 VND for selling.
Vietcombank's EUR buying rate is 27,726 VND and selling rate is 29,245 VND, while Vietinbank's rates are 27,710 VND for buying and 29,210 VND for selling. BIDV reported buying and selling rates of 27,871 VND and 29,106 VND, respectively.
The Japanese Yen's exchange rate at the State Bank is currently set at 160 VND for buying and 176 VND for selling. Vietcombank's rates for the Yen are 169.81 VND for buying and 180.60 VND for selling, while Vietinbank's rates are 172.18 VND for buying and 181.88 VND for selling. BIDV's rates stand at 172 VND for buying and 179.97 VND for selling.
In the black market, as of 5:00 AM on April 4, the USD increased by 83 VND on the buying side and 108 VND on the selling side compared to the previous trading session, with rates hovering around 25,922 - 26,022 VND/USD.
The unfolding situation in the foreign exchange market illustrates the interconnectedness of global economies and the far-reaching impacts of domestic policies on international trade. As investors brace for potential retaliatory measures from trading partners, the coming weeks will be critical in shaping the economic landscape.
In summary, the USD's decline against other currencies highlights the volatility in the foreign exchange market, driven largely by geopolitical factors and economic policy announcements. As the situation develops, stakeholders across the globe will be watching closely for any signs of stabilization or further turmoil.
