BENGALURU: Vietnam’s currency came within touching distance of its all-time low on Tuesday, pressured along with other Asian currencies by the dollar’s strength as US President Donald Trump continues to ratchet up the pressure on global trade.
Trump raised tariffs on steel and aluminium imports on Monday and plans to announce reciprocal tariffs over the next two days on all countries that impose duties on US goods, risking a multi-front trade war and firming the dollar.
While Vietnamese stocks gained 0.3%, the dong fell as much as 0.5% to 25,498 per dollar, just shy of the 25,550 record low from December 31.
The country — among the world’s most trade-dependent countries — recently warned that exports, which are about 90% of its economic output, may face major impacts this year, especially from US tariffs and tax policies.
Its trade surplus with the US is the third highest globally, trailing only China and Mexico.
Among other currencies, the Philippine peso was 0.1% lower and the Indonesian rupiah was down 0.2%.
The Thai baht fell 0.7%, likely also pressured by “some oil-buying flows,” according to Poon Panichpibool, market strategist at Krung Thai Bank.
The biggest exception was the Indian rupee, which jumped 0.7%, aided by the central bank’s heavy-handed intervention.
Stock markets in the region were mostly mixed ahead of US inflation data later this week. Federal Reserve Chair Jerome Powell’s semiannual monetary policy testimony later in the day will be monitored for comments on tariffs and inflation.
The Philippine equity index fell 0.9%, while Indian shares dropped 0.5%.
Equities in Indonesia sank as much as 1.8% to their lowest since May 2022 as mining stocks came under pressure after new regulations introduced by the government.
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