Dollar slides against dong as SBV lifts reference rate
Vietcombank sold the US dollar at VND26,080 on Wednesday, a 0.08% decrease, while the State Bank of Vietnam increased its reference rate to VND25,646.
Dong strengthens against US dollar
The US dollar weakened against the Vietnamese dong on Wednesday, 13 October 2026. Vietcombank, a major commercial bank, sold the greenback at VND26,080, reflecting a 0.08% decline from its Tuesday closing price. In the unofficial market, the dollar also depreciated, falling 0.42% to trade around VND26,050.
This movement occurred as the dollar also eased against other major global currencies, indicating broader pressure on the greenback.
State Bank of Vietnam adjusts reference rate
Concurrently, the State Bank of Vietnam (SBV) adjusted its official reference rate, increasing it by 0.05% to VND25,646. This upward revision by Vietnam's central bank suggests a policy stance aimed at managing currency stability amidst the broader market movements.
The SBV's reference rate serves as a key benchmark for commercial banks and influences the interbank market, potentially impacting the cost of imports and exports for Vietnamese businesses.
Global dollar index declines
Globally, the US dollar index, which tracks the greenback against a basket of six major currencies, recorded a 0.09% drop to 102.09 on Wednesday. This followed a more significant 0.35% slide on Tuesday. Traders are closely monitoring upcoming signals regarding the timing of potential interest rate adjustments by the US Federal Reserve.
Against this backdrop, the euro gained 0.09% to $1.1208, the Japanese yen strengthened 0.08% to 158.19 per dollar, and sterling climbed 0.15% to $1.3272.
US inflation data in focus
Market attention now centres on the release of forthcoming US consumer price index (CPI) data and speeches from Federal Reserve policymakers. These events are expected to provide clarity on the outlook for US interest rates.
Carol Kong, a currency strategist at Commonwealth Bank of Australia, noted the potential for core CPI to surprise on the upside due to strong consumer demand and elevated costs. Such a scenario could increase market expectations for an October Fed rate hike and potentially bolster the US dollar.
Asian businesses engaged in trade with Vietnam will find their dong-denominated costs or revenues shifting slightly due to the currency's recent strengthening. For broader Asian markets, the upcoming US CPI data and Federal Reserve commentary are crucial.
An unexpected rise in US inflation could accelerate the timeline for a Fed rate hike, potentially drawing capital away from Asian emerging markets and strengthening the US dollar, impacting regional currency valuations and capital flows. Investors should watch for the CPI release date.
This article is journalism, not investment advice; consult a licensed professional before making financial decisions. Market data is indicative, may be delayed, and should be verified with your broker or exchange before use.
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