Market Highlight 29.01.2026

The U.S Federal Reserve last night announced it would keep its benchmark interest rate for the world’s largest economy unchanged at 3,5% - 3,75%, with 10 out of 12 members voting in favour. FED Chair Jerome Powell said recent data suggest the macroeconomic backdrop has improved compared with the December meeting, with stronger economic growth and early signs that the labour market is stabilising. This gives the FED room to refrain from further rate cuts until fresh evidence emerges - either a renewed weakening in the labour market or inflation re-accelerating above the Central Bank’s target. If the U.S labour market does not deteriorate further, the next rate cut may not come until after Powell’s term as FED Chair ends in May. Meanwhile, two Federal Reserve Governors recently appointed by President D. Trump voted in favour of an additional 0,25 percentage-point rate cut at this meeting.

The USD rebounded against the euro (+0,71%) and the yen (+0,81%) yesterday after the FED held rates steady and offered few signals in its latest policy statement on when rates could fall further. Markets are still pricing in roughly an 85% probability that the FED will again leave rates unchanged at its March meeting. Separately, Treasury Secretary Scott Bessent said the U.S Government continues to support a strong dollar and has not intervened in the USD/JPY exchange rate.

In Vietnam, the USD/VND interbank rate opened yesterday at 26.110 and quickly slipped to around 26.065 by the close, tracking the sharp weakening of the USD in global markets. The market is expected to trade around the 26.050 - 26.100 range today. That said, interbank demand for VND will need to be monitored closely through the first half of February.

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