Dollar edges up against dong

By Dat Nguyen February 26, 2023 | 07:41 pm PT

An employee counts U.S. banknotes at a bank in Hanoi. Photo by VnExpress/Giang Huy

The U.S. dollar gains over the Vietnamese dong Monday morning, pushed up by a global rise as data seems to signal a recovery in the U.S. economy.

Vietcombank sold the dollar at VND23,990 Monday, up 0.08% from Sunday.

Eximbank maintained the rate at VND23,940. Techcombank also kept the dollar stable at VND23,970.

The State Bank of Vietnam held firm to its reference rate at VND23,642.

Unofficial exchange points sold the dollar at VND23,885.

The dollar has gained over the dong by 1.1% since the beginning of the year.

Globally dollar was on the front foot on Monday, hovering near a seven-week peak after a slew of strong U.S. economic data reinforced the view that the Federal Reserve will have to raise interest rates further and for longer, Reuters reported.

The dollar index, which measures the U.S. currency against six major peers, was at 105.17, just below the seven week peak of 105.32 it touched on Friday after hotter-than-expected data. The index is up 3% for February and set to snap a four-month losing streak.

Rodrigo Catril, senior currency strategist at National Australia Bank, said the data depicted a U.S economy running too hot at the start of the year, increasing the urgency for the Fed to tighten further over coming months.

"The reality is that the U.S economy has started 2023 from a stronger position than many of us had expected."