Dollar steps up against dong

By Dat Nguyen   May 16, 2023 | 08:28 pm PT
Dollar steps up against dong
An employee counts U.S. banknotes at a bank in Hanoi. Photo by VnExpress/Giang Huy
The U.S. dollar rose against the Vietnamese dong Wednesday morning.

Vietcombank sold the dollar at VND23,625, up 0.02% from Tuesday.

Eximbank kept its rate stable at VND23,600. Techcombank’s rate was also unchanged at VND23,623.

The State Bank of Vietnam raised its reference by 0.02% to at VND23,656.

Unofficial exchange points sold the greenback at VND23,470, up 0.09%.

The dollar has fallen against the dong by 0.44% since the beginning of the year.

Globally the dollar was firm on Wednesday, supported by a safety bid as the U.S. hurtled toward its borrowing limit and boosted after solid economic data had traders trimming bets on imminent rate cuts.

The dollar hit a two-week peak of 136.69 yen overnight and hovered just below that at 136.35 early in the Asia session. It also broke above its 50-day moving average against the euro to trade at $1.0866 per euro.

President Joe Biden and top congressional Republican Kevin McCarthy have edged closer to a deal to avoid a U.S. debt default - but nothing is clinched yet and ironically the risk the U.S. fails to pay debts has put a bid under the currency.

"The dominance of the dollar in the global payments system provides a strong explanation as to why," Rabobank strategist Jane Foley said.

"A crushing blow to the world’s number one economy can only have negative shock waves to the global economy, and reduce risk appetite, which would thus become a safe-haven event."

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