Dollar falls against dong

By Dat Nguyen   May 14, 2023 | 08:59 pm PT
The U.S. dollar fell marginally against the Vietnamese dong on Monday morning.

Vietcombank sold the dollar at VND23,630, down 0.04% from Sunday.

Eximbank kept its rate unchanged at VND23,610.

Techcombank raised the rate up 0.01% to VND23,634.

The State Bank of Vietnam increased its reference by 0.05% to VND23,652.

The greenback was sold at VND23,450 on the black market, down 0.06%.

The dollar has fallen against the dong by 0.42% since the beginning of the year.

The U.S. dollar rose to a five-week high against major peers on Monday as the safe-haven currency benefited from inflation worries at home and growth concerns globally, extending gains after its biggest weekly increase since September, Reuters reported.

The Turkish lira sank to a two-month low after weekend elections looked headed for a runoff, while the Thai baht rallied almost 1% after Thailand’s opposition routed military-allied parties also in weekend polls.

The greenback was buoyed by a rise in Treasury yields after a survey of U.S. consumers’ long-term inflation expectations jumped to the highest since 2011, putting a possible Federal Reserve rate hike next month back in play.

Traders currently put those odds at 13%, from close to zero prior to the University of Michigan’s poll. However, there are still as many as three quarter-point cuts priced into the market by year-end.

"Too many FOMC (Fed) rate cuts are priced for the near term in our view," Joseph Capurso, head of international economics at Commonwealth Bank of Australia (CBA), wrote in an client note.

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