Dollar strengthens against dong

By Minh Hieu   March 27, 2025 | 12:36 am PT
Dollar strengthens against dong
U.S. dollar banknotes are seen in this illustration taken July 17, 2022. Photo by Reuters
The U.S. dollar gained over the Vietnamese dong Thursday morning while trading near a three-week high against major currencies.

Vietcombank sold the greenback at VND25,780, a 0.12% increase from Wednesday. The dollar inched up 0.02% to VND25,935 on the black market.

The State Bank of Vietnam lowered its reference rate by 0.02% to VND24,846.

Globally, the dollar hovered near a three-week high on Thursday after U.S. President Donald Trump announced new tariffs on all auto imports, ratcheting up a global trade war that risks fueling inflation, Reuters reported.

Trump late on Wednesday announced plans for long-promised 25% tariffs on automotive imports that are set to go into effect on April 2. However, he said planned reciprocal tariffs on all countries will be "lenient".

"It's hard not to interpret this as anything but a cue for higher prices and lower growth with a soft landing becoming more complicated," said Prashant Newnaha, a senior Asia-Pacific rates strategist at TD Securities.

The dollar index, which measures the greenback against six major peers, rose 0.5% overnight to 104.71, the highest in three weeks, before settling at 104.46 on Thursday.

The euro touched a three-week low of $1.0731, but bounced off the 200-day moving average and was last up 0.1% at $1.0762. The yen, on the other hand, recovered some of the overnight losses and bounced 0.2% to 150.24 per dollar.

The Mexican peso weakened more than 0.5% to 20.2222 per U.S. dollar in Asian hours. The Canadian dollar was slightly weaker at 1.429 per U.S. dollar, having touched its strongest level since February 24 in the previous session.

 
 
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