The central exchange rate for the US dollar in Vietnam has continued to climb, reaching an unprecedented level as the State Bank of Vietnam announced a new rate of 25,632 VND per USD on September 17. This represents an increase of 6 VND from the previous day and is the highest rate recorded to date.

This is the fourth consecutive session in which the central bank has raised the exchange rate after three weeks of stability and slight declines. The central exchange rate serves as a reference point published daily by the State Bank, which determines the trading band for USD/VND at commercial banks. Currently, banks are allowed to quote USD prices within a 5% margin compared to the central rate.

On the same day, the price of USD at commercial banks also saw a slight increase. Vietcombank raised its rate by 45 VND from the previous day, now trading at 25,815 - 26,225 VND per USD. BIDV increased its rate by 10 VND, with a trading range of 25,805 - 26,185 VND, while Techcombank listed USD at 25,816-26,197 VND, up by 12 VND.

In the free market, some currency exchange points in Ho Chi Minh City reported USD buying and selling around 25,850 - 26,050 VND, a slight increase from the previous week. However, this level remains significantly lower than earlier in the year when the free market rate exceeded 28,000 VND.

Since mid-July, while USD prices at commercial banks and in the free market have been trending down, the State Bank has rapidly increased the central exchange rate. This change follows the Federal Reserve's recent decision to raise its benchmark interest rate by 25 basis points to a range of 3.75-4%, marking the first increase since July 2023. The dollar has strengthened following this decision, with the Dollar Index (DXY), which measures the USD's strength against a basket of six major currencies, reaching approximately 100.34 points, the highest in nearly seven weeks.

According to Nguyen Hoan Nien, an analyst at Shinhan Securities, the Fed's interest rate hike may exert additional pressure on the USD/VND exchange rate in the coming weeks. However, he noted that the exchange rate could stabilize in the last quarter of the year if the Fed does not continue to raise rates. The actual developments will depend on various factors and require ongoing monitoring.

In the precious metals market, spot gold prices briefly fell by nearly 100 USD per ounce before recovering to around 4,300 USD per ounce. Domestic gold prices also saw a slight decrease, with SJC listing gold bars at 142.8-145.8 million VND per tael, down by 700,000 VND from the previous day. The price of gold rings was quoted at 142.3-145.3 million VND per tael. The difference between domestic and global gold prices currently stands at around 10 million VND per tael.