# Fed’s rate cut a double-edged sword for Vietnam: VinaCapital

> VinaCapital says the Fed's first rate cut in four years will have mixed effects on Vietnam. The cut reduces dollar strength and eases depreciation pressure on the dong, but a slower US economy could weigh on Vietnam's GDP growth. The firm expects the State Bank of Vietnam not to follow the Fed's cut.

- Date: 2024-09-21 · published 2024-09-21T12:00:00.000Z
- Category: macro · region Vietnam · magnitude low
- Page: https://feedsoft.ai/events/28632-fed-s-rate-cut-a-double-edged-sword-for-vietnam-vinacapital
- Commodities: [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md)

## Why it matters

A weaker dollar eases pressure on Vietnam's import costs, but slower US and Vietnamese growth could reduce demand for feed-linked output. The net effect on feed prices is limited.

## Read by commodity

- DXY: bearish ▼

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| DXY | 2018-01-25 | [Dollar weakness a double-edged sword for Asian currencies](https://feedsoft.ai/events/67222-dollar-weakness-a-double-edged-sword-for-asian-currencies.md) | -0.3% | +0.7% |
| DXY | 2019-11-02 | [Vietnam’s financial markets respond positively to Fed rate cut](https://feedsoft.ai/events/56372-vietnam-s-financial-markets-respond-positively-to-fed-rate-cut.md) | +0.5% | +1.0% |
| DXY | 2025-09-19 | [Fed rate cut offers Vietnam room to stabilise currency and economy](https://feedsoft.ai/events/23195-fed-rate-cut-offers-vietnam-room-to-stabilise-currency-and-economy.md) | +0.7% | +0.9% |
| DXY | 2024-10-01 | [What a Fed rate cut could mean for the world](https://feedsoft.ai/events/28219-what-a-fed-rate-cut-could-mean-for-the-world.md) | +0.9% | +2.9% |
| DXY | 2023-11-27 | [US dollar weakens as Fed rate cut view weighs](https://feedsoft.ai/events/33364-us-dollar-weakens-as-fed-rate-cut-view-weighs.md) | -0.2% | -1.0% |

## Sources

- theinvestor.vn: https://theinvestor.vn/feds-rate-cut-a-double-edged-sword-for-vietnam-vinacapital-d12380.html

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.