Dollar strengthens against dong

By Minh Hieu   June 11, 2024 | 09:22 pm PT
Dollar strengthens against dong
An employee counts U.S. banknotes at a bank in Hanoi. Photo by VnExpress/Giang Huy
The U.S. dollar increased slightly against the Vietnamese dong Wednesday morning.

Vietcombank sold the greenback at VND25,466, up 0.02% from Tuesday.

The dollar was steady at VND25,780 on the black market.

The State Bank of Vietnam (SBV) maintained its reference rate is at VND24,250.

The dollar has strengthened against the dong by 4.28% since the beginning of the year.

Globally, the dollar steadied on Wednesday after hitting a four-week high against peer currencies overnight as market players awaited key U.S. inflation data and the Federal Reserve's updated interest rate projections due later in the day, Reuters reported.

The dollar index, which measures the greenback against a handful of other major peers, was little changed at 105.26, after touching its strongest level since May 14 at 105.46 overnight.

The dollar held the yen pinned at 157.06, although the currency pair remained off the one-week high of 157.40 touched the previous day.

The euro was flat at $1.0740, keeping off Tuesday low of $1.07195, which was its weakest level since May 2.

The U.S. dollar has rebounded after Friday's stronger-than-expected jobs report raised the prospect of inflation remaining sticky while growth stays strong, making the U.S. central bank less likely to cut rates in the coming months.

"Consensus seems to be that the number of cuts in 2024 will be downgraded from three currently to two" in the latest dot plot, said Kieran Williams, head of Asia FX at InTouch Capital Markets.

Fed Chair Chair Jerome Powell is likely to strike a relatively dovish tone, however, given disappointing growth indicators since the last Fed meeting, Williams said.

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