US Dollar weakens as VN-Index sees strongest monthly gain

The US Dollar has faced downward pressure, trading near a three-month low as the US Department of the Treasury announced plans to increase the scale of long-term Treasury bond buybacks. This move, intended to support liquidity and manage yields, has inadvertently weakened the USD as investors weigh fiscal outlooks, geopolitical risks involving Iran, and Federal Reserve interest rate policies. The 30-year Treasury yield recently reached levels not seen since 2007.

In Vietnam, the VN-Index experienced a significant surge, gaining nearly 34 points in a single session to close at 1,768.12 points. This marked its strongest performance in a month, driven by improved liquidity and interest from the technology, securities, and banking sectors. While the market showed signs of recovery, experts remain cautious due to continued net selling by foreign investors and the upcoming resistance level at 1,800 points.

Domestically, the State Bank of Vietnam set a new historical peak for the central exchange rate at 25,600 VND/USD. Local commercial banks have seen USD rates rise, reflecting broader volatility in the foreign exchange market.