Market Highlight 25.03.2025

Economic activity in the United States expanded at a faster pace in March, driven by the strength of the services sector, which offset an unexpected contraction in manufacturing - even as price pressures continued to mount. According to data released by S&P Global on Monday, the U.S Composite PMI rose to 53,5 this month from 51,6 in February, marking a three-month high. Part of the gain in services stemmed from improved business conditions as warmer weather returned. While this momentum may prove temporary, the broader improvement helped ease concerns over a potential slowdown in the world’s largest economy amid ongoing trade policy uncertainty. In the manufacturing sector, input cost pressures accelerated at the fastest pace in nearly two years, as the effects of import tariffs increasingly filtered through into business operations.

The USD strengthened to multi-week highs against both the euro (+0,1%) and the yen (+0,94%) on Monday, following data that showed a pickup in American business activity and reports suggesting the reciprocal tariffs to be announced by the U.S on April 2 may not be as severe as initially feared. Nonetheless, Washington’s tariff plans still carry the risk of triggering a wave of countermeasures from major trading partners - potentially harming both the U.S and global economies, while introducing renewed volatility into currency markets. Investors will closely monitor the U.S Personal Consumption Expenditures (PCE) inflation data due on Friday.

The USD/VND interbank rate rose by an additional 25 dong in Monday’s trading session, closing at 25.645 and bringing the year-to-date increase to approximately 0,55%. The upward trajectory of the exchange rate is expected to remain supported this week, in line with the continued recovery of the USD on global markets.

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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