Vietnam's Currency Hits Record Low as Central Bank Weakens Reference Rate
Vietnam's dong plummeted to a record low against the US dollar on Tuesday as the central bank set the daily reference rate lower for the sixth consecutive day. The currency weakened by 0.5% to 25,516 per dollar, surpassing its previous all-time low set in December.
Emerging market currencies have come under pressure amid US tariff threats that have strengthened the dollar, particularly impacting trade-dependent nations like Vietnam. The State Bank of Vietnam has been progressively lowering the daily reference rate for the dong, paving the way for further depreciation.
According to Bloomberg data, the central bank weakened the daily reference rate to a record-low of 24,522 dong per dollar on Tuesday. The dong is allowed to fluctuate within a 5% range on either side of the reference rate.
The dong's depreciation is expected to continue as the central bank maintains its dovish stance.