Vietnam dong falls as US dollar weakens amid US data

On July 31, the State Bank of Vietnam set the central VND/USD rate at 25.320 dong per US dollar. Commercial banks quoted rates around 24.104 – 26.536 dong for buying and selling USD, with Vietcombank offering 26.080‑26.490, Vietinbank 25.920‑26.460 and BIDV 26.090‑26.470. The dollar slipped 2.6% against the Japanese yen, reaching its lowest level in over two months at 159.225 yen per dollar, amid market speculation that Japan’s government intervened to support the yen.

Analysts linked the dollar’s weakness to weaker‑than‑expected US consumer‑price‑index data and the Federal Reserve’s decision to keep rates unchanged, reducing expectations of further hikes. The decline was also reflected in the USD Index (DXY), which recovered slightly above the 100‑point mark but remained subdued. The combined effect of US economic signals and possible yen‑support actions drove the VND to strengthen against the dollar, setting a new historic peak for the exchange rate in Vietnam.