Dollar rises on black market

By Minh Hieu   March 7, 2024 | 09:59 pm PT
Dollar rises on black market
U.S. banknotes. Photo by Pixabay
The U.S. dollar rose slightly against the Vietnamese dong at unofficial exchange points Friday morning while remaining steady at banks.

Vietcombank sold the dollar at VND24,870, the same price as the previous day.

The greenback increased by 0.12% to VND25,380 on the black market.

The State Bank of Vietnam (SBV) lowered its reference rate by 0.09% to VND23,996.

The dollar has increased against the dong by 1.84% since the beginning of the year.

Globally, the dollar headed for its sharpest weekly drop of the year on Friday as Federal Reserve Chair Jerome Powell sounded more confident about cutting interest rates in coming months, while the yen gained on mounting speculation of a rate rise in Japan, Reuters reported.

Overnight the European Central Bank left its benchmark rate steady at 4% and laid groundwork for a cut in June. The euro rose, however, because the Fed funds rate is at 5.25-5.5% and investors see the United States as having more room to cut.

The common currency hit an almost two-month high of $1.0954 in the Asia session - putting it back in the middle of a range it has kept for a year. It is up 1% on the dollar for the week.

The yen is up 1.6% on the week, its strongest percentage rise since December as policymakers have noted signs of positive wage-price cycle sustaining inflation - setting the stage for Japan's first interest rate increase in 17 years.

The yen was above its 50-day moving average and at its strongest in a month at 147.54 in early Asia trade on Friday.

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