Dollar rises to new all-time high against dong

By Minh Hieu   April 14, 2024 | 09:03 pm PT
Dollar rises to new all-time high against dong
An employee counts U.S. banknotes at a bank in Hanoi, Nov. 14, 2022. Photo by VnExpress/Thanh Tung
The U.S. dollar rose to a new historic peak against the Vietnamese dong Monday afternoon.

Vietcombank sold the dollar at VND25,300 Monday, up 0.48% from Sunday.

The USD/VND exchange rate has increased by 3.60% since the beginning of the year.

At unofficial exchange points, the dollar was sold at VND25,550, up 0.08%.

The State Bank of Vietnam (SBV) kept its reference rate unchanged at VND24,096.

The greenback has increased against the dong by 3.32% since the beginning of the year.

Globally, the dollar steadied on Monday, holding its biggest weekly gain since 2022, as escalating conflict in the Middle East and the prospect of stubbornly high U.S. interest rates gave support, Reuters reported.

The dollar went up 1.6% against a basket of six major currencies last week after a small but unnerving upside surprise in U.S. inflation cast doubt over bets on U.S. rate cuts, while European policymakers signalled a cut within a few months.

The dollar made a 34-year high on the yen, rising to 153.69.

It made a five-month top on the euro on Friday and traded near those levels early in the Asia day, buying a euro for $1.0646.

Investors have slashed bets on Fed cuts and pushed back the start of the easing cycle to September after Wednesday's hotter-than-expected consumer prices (CPI) report.

"It is a data-light week so all eyes will turn to Fedspeak where more than a dozen voting members on the FOMC are likely to emphasize patience after last week's blowout CPI print," said Nicholas Chia, Asia macro strategist at Standard Chartered Bank.

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