The dong has remained resilient amid the selloff in regional currencies. Economists at ANZ Research believe there are some pressing reasons for the currency to weaken in the near future. USD/VND is trading at 23,245.50.
Key quotes
“While Vietnam’s measures to contain the coronavirus have been lauded, it is too early to rule out further spread. Therefore, if stronger measures are executed, it will prove negative for growth and for the currency.”
“The State Bank of Vietnam (SBV) recently cut its policy rates to support local firms impacted by the virus. We believe that the SBV may not be categorically averse to a weaker currency in order to support export.”
“We expect USD/VND to end the year at 23,500.”
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