Market Highlight 21.03.2025

Major central banks around the world are grappling with a convergence of slowing economic growth, rising inflation, and escalating tariff threats from the United States. The Federal Reserve held its benchmark interest rate steady for the second consecutive meeting on Wednesday, while simultaneously lowering its U.S growth forecasts and revising its inflation projections higher in response to the latest wave of tariff increases. A similar stance was adopted yesterday by both the Bank of England and Sweden’s Riksbank, while the Swiss National Bank delivered its fifth consecutive policy rate cut - widely expected to be the final move in the current rate-cutting cycle. Most policymakers signaled support for additional rate reductions this year, though at a more moderate pace, citing persistent concerns over wage growth and service-sector inflation.

The USD Index rose by 0,33% yesterday, marking its second straight day of recovery, after the Federal Reserve indicated that it is in no rush to cut rates further this year, given the demand to closely monitor economic uncertainties linked to President Donald Trump’s evolving tariff policies. Data released Thursday evening showed that U.S jobless claims ticked up slightly last week, suggesting the labor market remains stable through March. With President Trump maintaining his plan to implement reciprocal tariffs on major trading partners starting April 2, the outlook for USD volatility is expected to remain elevated in the coming period.

The USD/VND interbank exchange rate rose modestly by approximately 15 VND yesterday, closing the session at 25.565, in line with the USD’s rebound in global markets. Since the beginning of the year, the interbank rate has only edged up by around 0,26%, while the central reference rate has increased by 1,94%. The exchange rate is expected to continue trading near the 25.600 threshold today.

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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