Dollar dips against dong on black market

By Dat Nguyen   March 30, 2023 | 08:04 pm PT
Dollar dips against dong on black market
U.S. dollar banknotes are displayed in this illustration taken, February 14, 2022. Photo by Reuters
The U.S. dollar fell against the Vietnamese dong on the black market Friday morning.

Unofficial exchange points sold the dollar at VND23,530, down 0.08% from Thursday.

Vietcombank maintained the greenback at VND23,640.

Eximbank and Techcomback kept its rates unchanged at VND23,670 and VND23,648, respectively.

The State Bank of Vietnam (SBV) lowered its reference rate by 0.01% to VND23,600.

The dollar has depreciated against the dong by 0.38% since the beginning of the year.

Globally the dollar tracked toward a second consecutive quarterly loss on Friday, as investors see U.S. interest rates close to peaking and expect the dollar’s yield advantage is in decline, Reuters reported.

A modest boost from a rush to safety around mid-March as banking jitters hit global markets seems to be fading, and the dollar index is down 1.3% for the quarter.

Moves in the Asia session on Friday were modest, as a tense calm settled on traders, who still have an eye on the prospect of further deposit flight at U.S. regional banks.

The euro rose 0.5% overnight after stronger-than-expected German inflation figures reinforced expectations that there are a few more rate increases left in the Euro zone.

The euro was last a fraction firmer in Asia at $1.0908. The dollar drifted 0.2% higher on the yen to 133.07 yen.

Through March, U.S. interest rate markets dramatically repriced the outlook and now see a roughly 40% chance that the Federal Reserve is finished with rate increases. Fed funds futures have priced rate cuts by year’s end.

"The dollar is likely to be range-bound until the impact is a little clearer but if the re-pricing of the outlook for U.S. rates sticks, it’s got a fair bit further to fall," Societe Generale analysts said in a note.

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