Dollar drops to 3-week low against dong

Vietcombank sold the greenback 0.04% lower at VND26,120.

The State Bank of Vietnam lowered its reference rate by 0.01% to VND24,970.

On the black market the dollar was steady at VND26,500.

It has risen against the dong by 2.22% since the beginning of the year.

Globally the dollar dropped on Thursday in a turbulent week headlined by a U.S.-China tariff truce, while speculation that Washington is seeking a weaker dollar as part of some of the trade deals spurred further gains in the South Korean won, Reuters reported.

The won was 0.8% higher at 1,396.22 per dollar after a 0.6% rise in the previous session. The won was the worst performer among emerging Asian currencies last year, dropping 14% against the dollar but is up nearly 6% this year.

The dollar index, which measures the U.S. unit against six other currencies, was 0.11% lower at 100.89, but on course for the fourth straight week of gains.

"Reports of currency discussions between the U.S. and South Korea, coupled with signs the Trump administration may tolerate a weaker dollar, have fuelled won sentiment," said Kieran Williams, head of Asia FX at InTouch Capital Markets.

"Broader uncertainty around the domestic outlook and trade tensions could temper the won's upside near term."