Recent forecasts and updates indicate a complex outlook for the GBP to VND exchange rate. Analysts noted that the GBP remains mixed, prompted by a slight slowdown in the UK jobs market. However, expectations for the Bank of England (BoE) to maintain interest rates are solid, supported by the latest consumer price data, which could bolster the pound in the short term. The interest rate outlook suggests stability will persist for the time being, with some forecasts, such as those from HSBC and Deutsche Bank, predicting no cuts until late 2025, which could help the GBP hold its ground against the VND.
In contrast, the Vietnamese đồng faces significant challenges. The UOB has projected further depreciation for the VND, citing factors such as U.S. tariffs and external economic conditions. The imposition of a 46% reciprocal tariff on Vietnam is expected to impact exports, increasing pressure on the VND. Additionally, the high U.S. Dollar Index is another negative factor weighing down the currency.
Currently, the GBP to VND exchange rate is at 90-day highs near 36,022, which is 1.7% above its three-month average of 35,427. This stability has experienced limited volatility, trading within a 4.1% range from 34,599 to 36,022. Given the intertwined economic factors affecting both currencies, investors and businesses engaged in foreign transactions should monitor these developments closely, as any significant shifts in the inflation landscape, fiscal policies, or international trade dynamics could result in notable changes in the GBP to VND rate.
