USD/VND: Further gains in the dong likely in 2022 – ANZ

After appreciating around mid-November to levels last seen in 2018, the Vietnamese dong has fallen nearly 1.8% over the last two weeks. Analysts at ANZ Bank believe that this does not mark a reversal in its strengthening trend, which will likely continue over 2022.

Inflow-led pressure on the dong set to increase

“As export earnings normalise and FDI flows strengthen in 2022, the inflow-led pressure on the dong will increase and further appreciation is likely.”

“The recent weakening in the dong does not mark a reversal of its strengthening trend, which we expect will continue over 2022.”