Market Highlight 28.01.2026

The USD posted its sharpest one-day decline since the tariff shock in April 2025, after President D. Trump said he was not concerned about the currency’s recent depreciation. The USD Index fell by 1,28% yesterday and is down 1,68% so far this week. Pressure on the greenback has been driven by concerns over U.S economic leadership following President D. Trump’s recent efforts to assert control over Greenland - moves that have angered members of the European Union. Markets are also watching for coordinated action between the U.S and Japanese Central Banks to intervene in foreign-exchange markets in support of the JPY. The USD has retreated from its post-COVID highs, when the U.S economy was outperforming many of its peers. Now, as other economies recover, America’s relative advantage appears less pronounced. Investors are also focused on the prospect of a new FED Chair who may favour more rate cuts, President D. Trump’s threats to the Central Bank’s independence, and rising U.S public-debt risks. Washington has reasons to tolerate a weaker USD, as it could help revive U.S manufacturing and exports. The EUR surged nearly 1,4% yesterday to a one-year high of $1,208, while the AUD climbed 1,38% to $0,7 and GBP rose 1,24% to $1,387.

The USD/VND exchange rate extended its decline yesterday, falling a further VND 40 to close at 26.130. The broad-based weakening of the USD in global markets is currently driving the domestic exchange-rate trend. The downside may extend further today, potentially pushing the rate toward the 26.050 - 26.100 range, as markets await the outcome of the Federal Reserve’s January meeting, which concludes early tomorrow morning.

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