The State Bank of Vietnam set the central exchange rate at VND 25,059 per USD on Monday morning, up two dong from the previous week’s closing level.
With a permitted trading band of 5 per cent, commercial banks were allowed to quote the US dollar within the range of VND 23,806-26,311.
Reference rates at the central bank’s Foreign Exchange Management Department also rose, reaching VND 23,857-26,261 per USD.
Following the increase in the central rate, many banks pushed their selling prices to the allowed ceiling of VND 26,311 per USD.
Several major lenders quoted the US dollar at around VND 26,041-26,311 (buy-sell), while another state-owned bank listed it at VND 26,089-26,311.
Private commercial banks also raised their selling price to the ceiling, with buying prices commonly ranging between VND 26,020 and VND 26,091.
Checking USD at a bank (Photo: Tien Tuan).
Meanwhile, the unofficial or “black market” exchange rate climbed sharply, rising by about VND 300 in both directions to around VND 27,150-27,200 per USD.
The domestic currency movement reflects the strengthening of the US dollar globally. The US Dollar Index rose 0.6 per cent in the latest session to 99.59 points, its highest level in several months.
Market analysts say the greenback has been supported by rising geopolitical tensions in the Middle East, which have increased demand for safe-haven assets.
Investors are also closely watching upcoming US economic data, particularly inflation and labour market indicators, which will influence policy decisions by the Federal Reserve.
Additional attention has focused on US President Donald Trump’s nomination of Kevin Warsh to succeed Jerome Powell as Fed chair, a move some investors believe could signal a less dovish policy approach.
Earlier this month, SBV Deputy Governor Pham Thanh Ha said escalating tensions in the Middle East had driven oil prices up by 8-13 per cent in recent days, adding pressure on global inflation and exchange rates.
Analysts at VNDirect Securities said the US dollar may receive short-term support from rising energy prices but could face risks if high costs persist and weaken the US economy.
They also noted longer-term pressures on the currency, including shifts in global trade, reduced reliance on the dollar in foreign exchange reserves and concerns over the US budget deficit and public debt.
