Market Highlight 09.07.2025

   The protracted and increasingly unpredictable tariff negotiations are emerging as a major obstacle for the global economy. On Monday, President Donald Trump announced an extension of three weeks - until August 1 - for the implementation of new reciprocal tariff measures, pushing back the original deadline that was set to expire today. This move prolongs market uncertainty as businesses are forced to delay investment decisions while they wait for greater clarity on future access to the world’s largest consumer market. Higher tariffs will inevitably have a direct impact on global growth by dampening demand for goods in the U.S, while exporting nations will face intensified competition in alternative markets outside the United States. Financial data firm Mergermarket estimates that the total number of global merger, acquisition, divestment, financing, and joint venture deals in the first half of 2025 has fallen to its lowest level in two decades. More worryingly, many major global investment conglomerates remain uncertain whether the ongoing trade negotiations between the U.S and its partners will conclude by the end of August or drag on throughout President Trump’s four-year term.
   The Japanese yen weakened by 0,33% against the U.S. dollar on Monday after Japan received a notice of a 25% reciprocal tariff from the U.S. President. In contrast, the Australian dollar gained 0,62% after the Reserve Bank of Australia unexpectedly decided against an interest rate cut, surprising the market. President Trump also announced plans last night to impose a 50% tariff on copper - a move expected to raise production costs for U.S factories given that the country imports roughly half of its copper needs.
   The USD/VND interbank exchange rate traded mostly around 26.140 on Monday, with the session low recorded at 26.110. The exchange rate is expected to remain stable today within the 26.100 - 26.200 range, with additional foreign currency inflows anticipated in the market this week.

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