Dollar gains marginally against dong

By Dat Nguyen July 26, 2023 | 08:14 pm PT

An employee counts U.S. banknotes at a bank in Ho Chi Minh City. Photo by VnExpress/Thanh Tung

The U.S. dollar on Thursday morning rose slightly over the Vietnamese dong while dropping from a two-week high globally.

Vietcombank sold the dollar at VND23,840, up 0.02% from Wednesday.

Techcombank raised its rate by 0.01% to VND23,846.

The State Bank of Vietnam lowered its reference rate by 0.04% to VND23,736.

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

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

Globally the dollar was on the back foot on Thursday after the Federal Reserve delivered what some expected to be its last rate hike, while market focus shifted across the Atlantic to the European Central Bank's (ECB) rate decision later in the day, Reuters reported.

The Fed on Wednesday raised interest rates by a quarter of a percentage point, as expected, marking the central bank's 11th rate increase in its last 12 meetings.

The dollar index was last 0.04% lower at 101.06, away from a two-week top of 101.65 hit earlier in the week, though its losses were muted as money markets had already priced in Wednesday's 25-basis-point increase.

Sterling steadied at $1.2935, having eked out a slight gain against the dollar in the previous session.