Dollar plunges against dong

By Dat Nguyen   August 18, 2023 | 12:18 am PT
Dollar plunges against dong
An employee counts U.S. banknotes at a bank in Hanoi. Photo by VnExpress/Giang Huy
The U.S. dollar fell against the Vietnamese dong Friday afternoon after a decline on Thursday.

Vietcombank sold the dollar at VND23,970, down 0.29% from the previous day.

The State Bank of Vietnam reduced its reference rate by 0.02% to VND23,946.

The greenback rose 0.04% to VND24,010 on the black market.

It has increased against the dong by 1.01% since the beginning of the year.

The dollar was set for a fifth winning week versus major peers, making it longest winning streak for 15 months, buoyed by expectations U.S. interest rates will stay high for longer, and by a shift to safer assets due to worries over China's economy, Reuters reported.

The U.S. dollar index - which measures the currency against six developed-market rivals, including the yen and euro - eased 0.02% to 103.38 in the Asian day, after touching a two-month high at 103.59 overnight.

For the week, it is set to gain 0.5%.

On Thursday, minutes from the Federal Reserve's last meeting showed most members of the rate-setting committee continued to see "significant upside risks to inflation," suggesting a bias toward further rate increases.

Strong economic data this week, particularly retail sales, had already bolstered the case for additional tightening.

That all helped push 10-year Treasury yields to the highest since October at 4.328% on Thursday.

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