On March 4, 2025, the State Bank of Vietnam announced changes affecting its currency exchange rates, particularly notable was the increase of 32 VND for the Vietnamese currency against the US dollar, bringing the central exchange rate to 24,758 VND.
The reference USD exchange rate at the State Bank's Exchange showed indications of growth with buying set at 23,571 VND and selling at 25,945 VND. This upward trend is also mirrored at various commercial banks like Vietcombank, which reported rates of 25,390 VND for purchasing and 25,780 VND for selling, reflecting an increase of 50 VND on both fronts compared to the previous trading session.
Alongside USD fluctuations, the value of the Euro and Japanese Yen also saw adjustments. The reference EUR exchange rate was reported at 24,501 VND buying and 27,080 VND selling, with similar increases documented by commercial banks. The Japanese Yen exchange rate held steady at 156 VND for buying and 173 VND for selling at the State Bank’s Exchange.
Market updates indicate Vietinbank's and BIDV’s rates for both currencies also follow similar trends, showcasing changes reflective of global currency dynamics where the exchange rate varies based on market sentiment.
On the black market, rates rose by 17 VND, trading around 25,752 - 25,822 VND for USD, reflecting the depths of economic shifts influenced by broader geopolitical events.
According to market analysis, the DXY Index declined by 1.07%, settling at 106.55 points. This decline was attributed to investors focusing on prospects of peace negotiations concerning the Russia-Ukraine conflict, along with European expenditure patterns affected by U.S. tariffs.
Reflecting upon the global currency scenario, President Donald Trump announced the implementation of new 25% tariffs on imports from Canada and Mexico effective today. This announcement has put additional pressure on financial markets, heightening anxiety over potential new trade barriers impacting exports and overall economic health, especially as Canada traditionally ships around 75% of its goods to the U.S.
Meanwhile, the United Kingdom experienced fluctuations as well, with Chancellor Keir Starmer on March 2 announcing support for Ukraine, allowing for the purchase of air defense missiles. The British pound noted marginal gains, particularly against the USD with figures reaching 1.2614 USD, up by 0.3%.
The fluctuated pound indicates changing sentiments around UK monetary policy, especially with the Bank of England’s vice-governor noting increased pressures on wages which heighten the chances of persistent inflation beyond designated targets. This situation places extra economic pressure on the UK as it navigates through turbulent waters.
The Euro faced greater challenges after President Trump’s tariff warnings led to increased volatility across European currencies. Much pressure has mounted on this bloc, especially considering the broader EU economic interactions. Comparatively, the British pound's slight recovery reflects unique geographic advantages and anticipation of slower interest rate cuts relative to other nations.
Overall, the developments today outline significant economic shifts, particularly emphasizing the currency market's response to international economic policies, trade negotiations, and geopolitical tensions. Stakeholders need to pay close attention to these developments as they shape the global economic landscapes significantly.