Market Highlight 07.10.2025

The Japanese yen (JPY) weakened sharply on Monday, falling 1,8% to trade below the 150-per-dollar threshold for the first time in over two months, closing the day at 150,3. The decline followed the election of Sanae Takaichi, a well-known advocate of monetary easing, as leader of Japan’s ruling Liberal Democratic Party (LDP) over the weekend. She is set to become Japan’s next Prime Minister following a parliamentary vote on October 15. Markets interpret Takaichi’s leadership as a potential return to Abenomics-style policies, featuring enhanced cash handouts and tax rebates to support households struggling with inflation. Her victory has also dampened expectations that the Bank of Japan (BoJ) will raise interest rates at its meeting later this month.

Meanwhile, global gold prices surged to a new record high, nearing USD 4.000 per ounce, as the ongoing U.S Government shutdown added further uncertainty to the Federal Reserve’s interest rate trajectory ahead of its October 29 meeting. Spot gold rose 0,4% in early Tuesday trading to USD 3.976,25 per ounce, extending Monday’s 1,9% gain. The metal has now climbed over 50% this year, repeatedly setting fresh all-time highs, supported by Central Bank purchases and increased ETF holdings, as the FED resumes its rate-cutting cycle.

The USD/VND interbank rate remained stable in the 26.360 - 26.370 range on Tuesday, with market sentiment turning more cautious amid delayed U.S economic data releases caused by the Government shutdown. Domestically, the State Bank of Vietnam (SBV) continued to lower the central reference rate, setting the effective ceiling rate for the start of the week at 26.403. The interbank market is expected to trade steadily between 26.350 and 26.400 throughout the day.

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