Market Highlight 11.02.2025

The USD appreciated by 0,22% on Monday after U.S President Donald Trump announced a 25% tariff on all imported steel and aluminum products, set to take effect on March 4. In contrast, the CAD, JPY, and EUR weakened due to concerns over the escalating trade tensions. While imported steel accounts for only a small portion of total consumption, the U.S heavily relies on aluminum imports to meet domestic demand, with significant supply coming from Canada, the United Arab Emirates, and China. According to government data and the American Iron and Steel Institute, Canada is the largest exporter of steel and aluminum to the U.S, followed by Brazil, Mexico, South Korea, and Vietnam.

Meanwhile, South America, Africa, and South Asia are expected to face the most severe economic shocks if President Donald Trump proceeds with reciprocal tariffs, as announced over the weekend. Although developed European economies are less affected, sectors with high protectionist tariffs, such as automobiles and agricultural products, are likely to be subject to retaliatory tariffs from the U.S.

The USD/VND exchange rate surged past 25.400 early yesterday as global trade tensions continued to fuel market concerns. Although constrained liquidity in the interbank VND market helped moderate the exchange rate’s upward momentum, the market still closed at 25.390, marking an increase of approximately 80 VND in the first trading session of the week. Notably, the State Bank of Vietnam (SBV) raised the central exchange rate to a new record high of 24.487, bringing the effective ceiling rate for Monday to 25.711. The interbank exchange rate is expected to continue its slight upward trend today, officially returning to the 25.400 - 25.450 range.

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Directly contact us to receive market news and consultancy on foreign exchange products and derivatives:

- Financial Markets Division – Email: ktttc@acb.com.vn ; or

- Mr. Khanh Hoang (Financial Markets Senior Analyst) – Email: hoangnk@acb.com.vn