Dollar drops on black market

By Dat Nguyen November 16, 2022 | 04:05 am PT

A trader counts U.S. dollar banknotes at a currency exchange booth in Peshawar, Pakistan September 15, 2021. Photo by Reuters/Fayaz Aziz

The U.S. dollar plunged on the black market Wednesday after data shows a decline of the greenback’s value globally as U.S. inflation seems to be cooling down.

The dollar fell 0.48% from Monday to VND25,000 at unofficial exchange points.

It has dropped 1.96% since the peak of VND25,500 last month.

Vietcombank, Eximbank and several other lenders kept the exchange rate unchanged from Tuesday at VND24,860.

The State Bank of Vietnam (SBV) also maintained its reference rate at VND23,677.

The USD Index, which measures the greenback’s strength against major currencies, has fallen 5.3% since its peak in early September.

Data last week had shown that U.S. inflation cooled more than expected in October, raising bets that the Fed could temper its tightening cycle after delivering four consecutive 75 basis point hike this year, Reuters reported.

Goldman Sachs said it expects a "significant" decline in U.S. inflation next year due to easing in supply chain constraints, a peak in shelter inflation and slower wage growth.