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USD/VND holds in a narrow range as Vietnam CPI rises
Vietnam’s August CPI accelerated to 4.9% year over year, while the trade deficit narrowed, helping keep USD/VND largely steady near 26,080.
Commerzbank highlighted Vietnam’s inflation and trade dynamics in a recent outlook, noting that USD/VND has stayed in a tight range after the currency fell to around 26,080 last Friday.
The bank said August CPI inflation picked up to 4.9% year over year, up from 4.5% in July, while core CPI remained broadly stable at about 4.5%, suggesting limited broad-based price pressure so far.
On trade, Commerzbank pointed to a narrower August deficit, driven by a larger-than-expected slowdown in import growth, and said the trade deficit narrowed more than expected versus the prior month.
In FX terms, the bank described USD/VND as broadly unchanged on the week and trading in a 26,070 to 26,100 band since late August, adding that portfolio inflows could provide further support for the VND.