Dollar drops slightly against dong

By Dat Nguyen   March 21, 2023 | 07:43 pm PT
Dollar drops slightly against dong
An employee counts U.S. banknotes at a bank in Ho Chi Minh City. Photo by VnExpress/Thanh Tung
The U.S. dollar slipped marginally against the Vietnamese dong Wednesday morning.

Vietcombank let the dollar slide 0.04% from Tuesday to VND23,740.

Eximbank maintained the greenback at VND23,740. The rate at Techcombank was unchanged at VND23,758.

The State Bank of Vietnam kept its reference rate stable at VND23,617.

The dollar was steady on the black market at VND23,680.

It has gained over the dong by 0.04% since the beginning of the year.

Globally the dollar was pinned near five-week lows on Wednesday ahead of the conclusion of the U.S. Federal Reserve’s policy meeting, with investors awaiting clarity on the path the central bank is likely to take in the wake of global banking turmoil, Reuters reported.

Investor attention is zeroed in on whether the Fed will stick to its hawkish path to fight sticky inflation or pause interest rate hikes given recent trouble among banks which has included bankruptcy and last-minute rescues.

The U.S. dollar index, which measures the currency against six peers, was at 103.22, just above the five-week low of 102.99 touched overnight. The euro was at $1.0767, hovering around a five-week high of $1.0789 scaled overnight.

Markets are now pricing in about a 14% chance of the Fed not increasing rates, with a roughly 86% chance of a 25 basis point hike, showed the CME FedWatch tool. Just a month earlier, the market was pricing in a 24% chance of a 50 basis point hike.

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