Dollar declines against dong

By Dat Nguyen   July 31, 2023 | 08:56 pm PT
Dollar declines against dong
An employee counts U.S. banknotes at a bank in Ho Chi Minh City. Photo by VnExpress/Thanh Tung
The U.S. dollar dropped against the Vietnamese dong Tuesday morning.

Vietcombank sold the dollar at VND23,840 at the time of publishing, down 0.06% from Monday’s closing price.

The State Bank of Vietnam kept its reference rate stable at VND23,757.

The greenback fell 0.08% to VND23,700 on the black market.

It has gained 0.46% over the dong since the beginning of the year.

Elsewhere the yen slipped to a fresh three-week low against the dollar on Tuesday as traders pondered the Bank of Japan’s steps last week to tweak its yield curve control policy, while the Australian dollar was soft ahead of the Reserve Bank of Australia’s policy decision, Reuters reported.

The yen has been on a wild ride since Friday, when the BOJ took another step toward a slow shift away from decades of massive monetary stimulus, saying it would offer to buy 10-year Japanese government bonds at 1.0% in fixed-rate operations, instead of the previous rate of 0.5%.

The Asian currency touched a low of 142.80 per dollar. It was last at 142.66 per dollar, down 0.26%. Japan’s benchmark 10-year government bond yield surged on Monday to a nine-year high, leading the central bank to conduct additional purchase operations to cap its rise.

"Markets could test just how ‘flexible’ the BOJ will be in the months ahead," said Carlos Casanova, senior Asia economist at UBP in Hong Kong, in a note, adding the subtle changes suggest that the BOJ may be gearing up to changing the YCC target in 2023.

go to top