Dollar dips against dong

Vietcombank sold the greenback at VND26,401, down 0.02% from the weekend. The currency dropped 0.16% to around VND27,332 on the black market.

The State Bank of Vietnam reduced its reference rate by 0.02% to VND25,144.

Globally, the dollar was nursing losses on Monday while the euro and sterling held steady ahead of their respective central bank decisions this week, with focus squarely on the rate outlooks across major economies as the new year approaches, Reuters reported.

Against a basket of currencies, the dollar held close to a roughly two-month low hit last week and stood at 98.37.

A divided Federal Reserve cut rates last week, but Chair Jerome Powell signaled borrowing costs are unlikely to drop further in the near term while awaiting more economic clarity.

The New Zealand dollar fell 0.43% to $0.5777, after the country's top central banker on Monday pushed back on expectations of rate hikes next year. The Japanese currency rose 0.3% to 155.39 per dollar.

Sterling eased 0.15% to $1.3360 in early Asia trade while the euro was down 0.03% at $1.1736.

The Australian dollar, often used as a liquid proxy for the yuan, was down 0.12% to $0.6646, though the onshore yuan strengthened to an over one-year high of 7.0500 per dollar.