Dollar dips against dong, holds steady with major peers

Vietcombank sold the dollar at VND25,260, down 0.12% from Tuesday. The greenback fell 0.16% to VND25,600 at unofficial exchange points.

The State Bank of Vietnam raised its reference rate by 0.02% to VND24,260.

Since the beginning of the year, the dollar has increased against the dong by 3.44%.

Globally, the dollar remained on the back foot on Wednesday after tumbling versus major peers overnight as a benign reading for U.S. producer prices reinforced bets on Federal Reserve interest rate cuts this year, Reuters reported.

The dollar index - which measures the currency against six major rivals, including sterling, the euro and the yen, was steady at 102.61 after slumping 0.49% overnight.

Commonwealth Bank of Australia analysts expect the dollar to be in a holding pattern before the release of U.S. CPI data, but then see risks tilted toward further weakness.

The euro was flat at $1.0991 after rising to $1.099975 on Tuesday for the first time since Aug. 5.

The yen strengthened against the dollar, buoyed by lower U.S. bond yields, with crucial U.S. consumer price index figures looming later on Wednesday.

The dollar dropped 0.31% to 146.40 yen, with U.S. 10-year Treasury yields edging down to 3.85% in Asian hours, after declining 5.5 basis points overnight.