Saigon Securities Incorporation (SSI) Retail Research has released the weekly currency market report as of January 11th 2019. Accordingly, the US dollar in the past week was under strong pressure of decline. The US dollar depreciated by respectively 0.9 percent, 0.9 percent, 0.1 percent and 1.6 percent against the euro, British Pound, Japanese yen and Chinese yuan. The Dollar Index dropped from 96 to 95.7 points.
In the country, after raising the buying exchange rate to 23,200 dong per US dollar since January 2nd, the State Bank of Vietnam (SBV) has purchased a relatively large amount of foreign currency for reserves and the US dollar supply is expected to continue to be abundant in the near future from the remittances flows and large capital transactions.
The US dollar/dong exchange rate of banks dropped by 10 dong per US dollar on both buying and selling rates to 23,150/23.240 dong per US dollar, lower than the buying rate of the SBV. On the free market, the buying rate increased by 10 dong per US dollar to 23,210 dong per US dollar and selling rate remained the same at 23,230 dong per US dollar.
According to analysis team, the pressure in the short term from the developments of US dollar and Chinese yuan against the dong has decreased significantly. The favourable foreign currency supply and demand and the US dollar-dong interest rate difference will support the stability of the US dollar/dong exchange rate in the near future.
