Dollar falls on black market

By Dat Nguyen   March 20, 2023 | 09:11 pm PT
Dollar falls on black market
U.S. Dollar banknotes are seen in this illustration taken July 17, 2022. Photo by Reuters
The U.S. dollar dropped marginally against the Vietnamese dong on the black market Tuesday.

Unofficial exchange points lowered the greenback by 0.17% to VND23,680.

But Vietcombank maintained the dollar at VND23,750.

Eximbank kept it at VND23,740.

The rate at Techcombank was unchanged at VND23,760.

The State Bank of Vietnam lowered its reference rate by 0.01% to VND23,617.

The dollar has gained over the dong by 0.08% since the beginning of the year.

The dollar regained some ground on Tuesday but was pinned near a five-week low as traders tiptoed back into riskier assets after UBS’ state-backed takeover of Credit Suisse allayed some fears of a widespread, systemic banking crisis, Reuters reported.

Market sentiment remained fragile, however, as investors struggled to determine the scale of the ramifications from a sector hit that began with Silicon Valley Bank’s collapse, putting a cap on risk appetite and giving some support to the safe haven dollar.

Sterling rose 0.02% to $1.2280, while the euro steadied at $1.0722.

The Aussie fell 0.22% to $0.6703.

News of UBS’ planned takeover of rival Credit Suisse on Sunday - a shotgun merger engineered by Swiss authorities - gave way to a small risk-on rally on Monday, as worries over market-shaking turmoil across global banks waned.

"Markets remain nervous, but the rapidity of policymakers’ response to the evolving banking sector risks is heartening," said Alvin Tan, head of Asia FX strategy at RBC Capital Markets.

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