HANOI: Analysts forecast that the Vietnamese dong may depreciate 3% against the US dollar in the first half of 2024 (1H24) as the greenback is expected to maintain its upward momentum in the near future.
According to data from Viet Dragon Securities Co (VDSC), the dong in the first quarter of 2024 (1Q24) depreciated about 2.% against the US dollar on the official market when the dollar index (DXY) was anchored at a high level.
On the interbank market, the average US dollar-dong exchange rate is gradually approaching its peak of 24,867 dong per US dollar, last seen in November 2023.
“With the expectation that the US dollar can still maintain its upward momentum in the near future, we think the depreciation margin of the dong can widen to 3% in 1H24,” VDSC said.
According to VDSC, the devaluation of the dong against the US dollar is in line with expectations at the beginning of this year, but the view that the dong may appreciate again at the end of the year needs to be considered more cautiously because the US Federal Reserve’s interest rate reduction roadmap. — Viet Nam News/ANN