Dollar steps up over dong

By Dat Nguyen February 6, 2024 | 08:42 pm PT

An employee counts U.S. banknotes at a bank in Ho Chi Minh City. Photo by VnExpress/Thanh Tung

The U.S. dollar rose against the Vietnamese dong Wednesday morning.

Vietcombank sold the dollar at VND24,570, up 0.16% from Tuesday.

The State Bank of Vietnam lowered its reference rate by 0.03% to VND23,956.

It fell 0.40% to VND24,850 on the black market.

The greenback has increased by 0.61% against the dong since the beginning of the year.

Globally the dollar remained under pressure on Wednesday after retreating from a nearly three-month high against the euro in the previous session with a decline in U.S. bond yields adding to the drag, Reuters reported.

Analysts pointed to technical factors for the dollar's pullback, following a two-day rally of as much as 1.4% against the euro after unexpectedly strong U.S. jobs data and more hawkish rhetoric from Federal Reserve Chair Jerome Powell scuppered bets for an early interest rate cut.

The U.S. dollar index - which measures the currency against six major peers, including the euro - was flat at 104.14, following Tuesday's 0.29% slide. It had reached the highest since Nov. 14 at 104.60 on Monday.