Market Highlight 23.10.2025

According to a White House statement released last night, the Trump Administration is considering new export restrictions on China, which would prohibit the sale of a wide range of critical technology software and engine components in coordination with G7 member nations. Earlier this month, President Donald Trump announced plans to impose an additional 100% tariff on Chinese goods and to introduce export controls on key software products effective November 1. This move is seen as a retaliatory response to China’s recent decision to restrict the supply of rare earth minerals - essential inputs for the production of consumer electronics, semiconductors, and jet engines - as well as the introduction of new port fees on U.S vessels. Nevertheless, President Trump expressed optimism that next week’s scheduled meeting with President Xi Jinping would pave the way for a broader and more comprehensive Trade Agreement.

The USD Index edged slightly lower yesterday after three consecutive sessions of gains. On Tuesday, President Trump rejected a request from senior Democratic leaders to hold negotiations until the ongoing three-week Federal Government shutdown is resolved. The stalemate adds further complexity to the Federal Reserve’s policy deliberations ahead of its upcoming October 29 meeting.

Domestically, the interbank USD/VND exchange rate traded close to the ceiling rate of 26.353 yesterday morning. In the afternoon session, the State Bank of Vietnam (SBV) announced it would continue offering six-month cancellable USD forward contracts at a rate of 26.550, offered to Credit Institutions with negative foreign exchange positions. The estimated transaction volume reached around USD 1,5 billion, following similar interventions by the SBV in August and September. The exchange rate is expected to hover within the 26.300 - 26.350 range today, though a cooling trend could become more apparent after the Federal Reserve’s meeting next week.

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