Dollar reaches new high against dong

Vietcombank sold the greenback at VND26,182, up 0.16% from the previous high of VND26,120 hit on Tuesday. The currency increased by 0.11% to VND26,230 on the black market.

The State Bank of Vietnam hiked its reference rate by 0.15% to VND24,936.

Globally, the dollar lost ground to the safe-haven yen and Swiss franc on Wednesday as the imminent imposition by the U.S. of 104% tariffs on China spooked world equity markets and sent the Chinese yuan to record lows, Reuters reported.

President Donald Trump showed no sign of backing away from the new increase of 50% on China, which goes into effect in just a few hours, accusing Beijing of manipulating the yuan to offset the levies.

"If that goes ahead, you may as well kiss goodbye to any last, lingering hopes that the U.S. economy might avoid a deep recession," said Chris Weston, head of research at broker Pepperstone.

The dollar has already reached an all-time top on the yuan offshore at 7.4288, breaching the previous high at 7.3765, and all eyes are on China's central bank to see whether it allows a further easing at its daily fix.

Worries about a U.S. downturn were pressuring the dollar elsewhere as markets returned to pricing in more rate cuts from the Federal Reserve.

The dollar lost 0.7% to 145.23 yen, heading back toward the recent six-month trough of 144.55. The yen was also up sharply on a range of high-yielding currencies as investors unwound carry trades.

The dollar touched a fresh six-month low on the Swiss franc at 0.8430, threatening major support at 0.8374.

The euro also edged higher, helped by reports Germany's conservatives had reached a deal with the centre-left Social Democrats to form a government, easing political concerns in the EU's largest economy.

The single currency added 0.4% to $1.0996, creeping back to last week's peak at $1.1147.