Vietnam's Central Bank Sets Record Rate for US Dollar Amid Global Tightening Cycles

The State Bank of Vietnam set a new record rate for the US dollar on Friday, lifting its daily central reference rate by 0.02 percent to VND25,637.

Vietcombank followed suit, trimming its selling rate for the greenback by 0.02 percent to VND26,200. This adjustment put downward pressure on commercial foreign exchange counters across Vietnam, causing a divergence between official banks and street trade.

Unofficial money changers pushed the US dollar up by 0.23 percent to trade near VND25,880, leaving street desks pricing dollars below the headline counters at major state lenders. This reverses the usual premium seen during periods of sharp currency volatility.

The Bank of Japan's decision to raise its benchmark rate to 1.25 percent, marking a 31-year peak for Japanese borrowing costs, softened the yen by 0.5 percent to 156.75 per dollar. However, Tokyo's currency retained a month-to-date gain of nearly 2 percent.