Market Highlight 16.06.2025

   The recent escalation in conflict between Israel and Iran over the past weekend may delay the timeline for potential U.S interest rate cuts, as the Federal Reserve evaluates possible inflationary consequences. Global oil prices surged by 8% last Friday, reaching a multi-month high of $73,7 per barrel, amid market concerns over significant disruptions to Middle Eastern oil supplies. This price spike could add to existing inflationary pressures, already exacerbated by President Donald Trump’s tariff policies on key U.S trading partners - making any monetary easing by the FED unlikely before December 2025. According to Bloomberg Economics, if oil prices continue to climb toward the projected $100 per barrel level, retail gasoline prices across the U.S could rise by approximately 17%, from $3,25 to $4,20 per gallon. This would likely push inflation up to 3,2% by June.
  On the evening of June 15, Vietnam’s Ministry of Industry and Trade reported that the third round of negotiations for the Bilateral Reciprocal Trade Agreement between Vietnam and the United States was held from June 9 to 12 in Washington, D.C. Over the four-day talks, both sides made substantial progress, narrowing gaps across all areas under negotiation. Discussions were candid and constructive, with each party openly addressing its respective concerns. Time was dedicated to thoroughly analyzing and clarifying issues to move toward mutually acceptable solutions.
  The interbank USD/VND exchange rate rose sharply at the end of last week, reaching an intraday high of 26.090, driven by a rebound in the global USD and escalating tensions in the Middle East. By Friday’s close, the rate stood at 26.075, marking a weekly increase of approximately VND 60. The upward momentum remains strong and could propel the interbank rate past the 26.100 threshold in early trading this week.

Please contact the nearest Asia Commercial Joint Stock Bank's branch to receive information and consultancy if you are in need of making any foreign exchange and derivatives transactions.

Asia Commercial Joint Stock Bank assumes no responsibility or liability for any purpose of reference or using the information provided by this newsletter.

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