Dollar slips against dong

By Dat Nguyen   May 10, 2023 | 07:50 pm PT
Dollar slips against dong
U.S. dollar banknotes are displayed in this illustration taken, February 14, 2022. Photo by Reuters/Dado Ruvic
The U.S. dollar dropped slightly against the Vietnamese dong on the black market Thursday morning.

Unofficial exchange points sold the greenback for VND23,450, down 0.04% from Wednesday.

But most banks kept the rate unchanged.

Vietcombank sold the dollar at VND23,640. Eximbank VND23,610, and Techcombank VND23,643.

The State Bank of Vietnam maintained its reference rate at VND23,632.

The dollar has fallen against the dong by 0.38% since the beginning of the year.

Globally the dollar sank for a second day against the yen on Thursday, feeling the pressure from lower U.S. Treasury yields after slowing inflation gave traders more confidence that the Federal Reserve is through with rate hikes, Reuters reported.

The 10-year Treasury yield, which the dollar-yen pair tends to track, slipped to 3.4252% in Tokyo trading, extending an 8 basis point decline from overnight, after headline CPI printed below 5% for the first time in two years.

The U.S. currency fell 0.26% to trade at 134.025 yen in the Asian morning, and earlier dipped as low as 133.895.

The dollar index - which measures the greenback against a basket of six major peers, including the yen - edged 0.05% lower to 101.36.

"Yesterday’s CPI was a bit of a relief, and we do expect that the Fed is now finished hiking," said Shinichiro Kadota, senior FX strategist at Barclays in Tokyo.

"That’ll weigh on dollar-yen," with the pair potentially weakening to as low as 130 in the near term, Kadota said.

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