On the morning of February 4, the foreign exchange market witnessed an upward adjustment of both the USD and the Chinese Yuan at commercial banks. This significant increase reflects fluctuations in the international market as well as investors' expectations for monetary policy in the coming time.
The central exchange rate announced by the State Bank this morning was 24,360 VND/USD, up 35 VND compared to yesterday. With a margin of +/-5%, the ceiling exchange rate allowed for trading today is 25,578 VND/USD, while the floor rate is 23,142 VND/USD.
In the banking market, the USD exchange rate tends to increase quite strongly. Vietcombank this morning listed the exchange rate at 25,120-25,480 VND/USD (buy-sell), up 180 VND compared to February 3. BIDV also adjusted the increase by 175 VND, bringing the buying price to 25,085 VND/USD and the selling price to 25,445 VND/USD.
Not only USD, Chinese Yuan also tends to increase in value. Vietcombank currently lists the buying price at 3,435 VND/NDT and the selling price at 3,545 VND/NDT, an increase of 28 VND compared to yesterday. BIDV adjusted the increase by 24 VND, bringing the exchange rate to 3,447-3,552 VND/NDT.
The move comes amid a strengthening US dollar in the international market as investors reassess expectations for the US Federal Reserve’s monetary policy. While the tariff-related statements may provide a boost to gold prices, the rising US dollar is putting countervailing pressure, said Jigar Trivedi, senior analyst at Reliance Securities.
Markets are also reacting to US President Donald Trump’s decision to impose new tariffs of 25% on imports from Canada and Mexico, and 10% on goods from China, effective today. The move has escalated global trade tensions, with Canada and Mexico announcing retaliatory measures and China saying it would take the case to the World Trade Organization (WTO).
These fluctuations will continue to be important factors that influence financial markets in the coming time. Mr. Matt Simpson, senior analyst at City Index, commented that despite the short-term bearish reaction, gold can still continue its upward trend this year due to the risk of inflation and global trade instability.
