The GBP to VND exchange rate is currently experiencing significant pressure due to ongoing fiscal challenges in the UK and the overall economic environment. Analysts have noted that the pound has been struggling to attract support as concerns mount over Chancellor Rachel Reeves’s upcoming autumn budget, which is set to include tax increases and spending cuts aimed at addressing fiscal issues. This uncertainty has led to a cautious outlook for the GBP, especially as UK economic data remains limited.
With the GBP recently trading at 90-day lows around 34,610 VND, this marks a 2.2% decline below its three-month average of 35,382 VND, reflecting a stable range of 4% from 34,610 to 36,001 VND. Market observers suggest that this weak performance stems from the UK’s monetary policy divergence, with differing expectations from the Bank of England (BoE) potentially impacting the pound's stability.
On the Vietnamese side, the VND has noticeably depreciated against major currencies, including the GBP, which has risen roughly 11% against the VND this year. Economists predict that the VND could depreciate further, with estimates of a 3% decline against the US dollar in 2025, driven by a strong USD and external economic pressures. The Vietnamese government is considering measures to stabilize the VND in light of tariffs imposed by the US, which have impacted exports.
Overall, the forecasts indicate a mixed outlook for the GBP to VND exchange rate. The GBP faces challenges from domestic fiscal and economic policies, while the VND's depreciation due to external factors adds complexity to the exchange dynamics. With uncertain economic conditions, stakeholders may need to exercise caution in their international transactions involving GBP and VND.
