Dollar falls against dong

By Dat Nguyen   December 14, 2023 | 08:31 pm PT
Dollar falls against dong
A currency dealer counts U.S. dollars at his shop in Karachi Oct. 8, 2008. Photo by Reuters/Athar Hussain
The U.S. dollar drops little against the Vietnamese dong Friday morning.

Vietcombank sold the dollar at VND24,390 Friday, down 0.12% from Thursday.

The State Bank of Vietnam lowered its reference rate by 0.26% to VND23,882.

The dollar fell 0.36% to VND24,650 on the black market.

The greenback has increased by 2.78% since the beginning of the year.

Globally the dollar languished near four-month lows on Friday, weighed by growing prospects of U.S. interest rate cuts next year, while the euro and pound found support as the central banks there reiterated the need for rates to stay higher for longer, Reuters reported.

In an action-packed week for central banks, traders found more clarity on when interest rate cuts were likely after Federal Reserve Chair Jerome Powell said at Wednesday's meeting that the tightening of monetary policy is likely over, with a discussion of cuts coming "into view".

The Fed's projections implied 75 basis points of cuts next year, from the current level.

That has resulted in the greenback sliding broadly against rivals, with the dollar index at 102.05, not far from the four-month low of 101.76 it touched on Thursday. The index is down 1.9% and on course for its steepest weekly decline since July.

 
 
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