Dollar gains over dong

By Minh Hieu   July 2, 2024 | 09:00 pm PT
Dollar gains over dong
An employee counts U.S. banknotes at a bank in Ho Chi Minh City. Photo by VnExpress/Thanh Tung
The U.S. dollar strengthened slightly against the Vietnamese dong Wednesday morning.

Vietcombank sold the dollar at VND25,470, up 0.02% from Tuesday.

The greenback fell 0.27% to VND25,910 on the black market.

The State Bank of Vietnam (SBV)’s reference rate rose 0.02% to 24,258.

The dollar has increased against the dong by 4.30% since the beginning of the year.

Globally, the dollar remained on the back foot on Wednesday after dovish comments from Federal Reserve Chair Jerome Powell sent U.S. bond yields lower, overshadowing a strong domestic jobs report, Reuters reported.

The euro held firm, helped by a stubbornly high local inflation reading on Tuesday.

However, the yen continued to languish close to a 38-year low versus the dollar, amid the increased possibility of a second Donald Trump presidency, which could likely lead to higher long-term Treasury yields.

"A Trump presidency would likely bring higher fiscal deficits, inflation and yields at the mid- to long-end of the U.S. rates curve, countering the impact of Fed rate cuts," said Tony Sycamore, a markets analyst at IG. "This possibility will likely see the BOJ save its intervention bullets for now."

The dollar index, which measures the currency against the euro, sterling, yen and three other major peers, was little changed at 105.66 early in the Asian session, after a 0.14% retreat in the previous session.

The euro was flat at $1.0749, trading near the top of its range since mid-June.

The yen was at 161.54 per dollar, after slipping to the lowest since December 1986 on Tuesday at 161.745.

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