The 90-day suspension of reciprocal tariffs by the Trump administration expires on July 9, 2025. This is a focal point for the markets in the coming days and might be one of the key reasons the exchange rate between the Vietnam dong and the U.S. dollar has come under considerable pressure recently. Diverging trends The U.S. Dollar Index (DXY) declined a further 2.6% in June 2025 to its lowest point in three years at 96.8. This marked the sixth consecutive month of dollar decline. Compared to its 2025 peak of 110, the greenback has lost 12% of its value. According to a recent survey by the Official Monetary and Financial Institutions Forum (OMFIF), the U.S. dollar has fallen from the most favored reserve currency last year to seventh place today. One-third of the 75 surveyed central banks — which collectively manage about US$5 trillion in reserves — said they plan to increase gold holdings in the next one to two years, while investors outside the U.S. are leading a trend of divesting from dollar-denominated assets. In contrast, the euro and Chinese yuan have emerged as top alternatives. Yet despite the weakening of the dollar on international markets, the dollar/dong exchange […]