Dollar drops against dong amid market uncertainties

Vietcombank sold the greenback 0.12% lower at VND25,670.

The State Bank of Vietnam hiked its reference rate by 0.04% to VND24,763.

Globally the yen was investors' safe harbour of choice on Tuesday and it traded near five-month highs as fears about a tariff-driven slowdown in U.S. growth have rattled U.S. stocks and the dollar, Reuters reported.

The yen touched a five-month peak of 146.625 per dollar and was last trading at 146.85.

The dollar index had already notched its largest weekly drop in more than two years last week as selling tracked a fall in U.S. bond yields and the euro leapt on German plans to reform a brake on borrowing.

"The market is unsure whether fading U.S. exceptionalism will continue to hurt the dollar or whether the dollar benefits from its safe-haven status," said Bank of Singapore strategist Sim Moh Siong, noting any extension of selling in stock markets may lead safe-haven dollar buying to finally kick in.

Chris Weston, head of research at broker Pepperstone in Melbourne, said: "Historically, the dollar outperforms when we get a solid rise in volatility, but when the U.S. economy and U.S. equity market is the central point of concern, this is now limiting the attractiveness of the dollar."