An employee counts U.S. banknotes at a bank in Hanoi. Photo by VnExpress/Giang Huy
The U.S. dollar strengthened against the Vietnamese dong Monday morning while sliding against major currencies.
Vietcombank sold the dollar at VND26,000, a 0.3% increase from the weekend. The greenback fell 0.38% to VND26,130 on the black market.
The State Bank of Vietnam reduced its reference rate by 0.15% to VND24,886.
Globally, the dollar drifted lower on Monday as an early bump off a three-year low fizzled, with markets spooked by the stream of tariff-related pronouncements from U.S. President Donald Trump that last week shook investor confidence in the world’s reserve currency, Reuters reported.
Against a basket of currencies, the U.S. dollar fell 0.45% to 99.45, not far from Friday’s three-year low.
The dollar reversed early gains as the Asian trading session got under way, falling against the Swiss franc towards a 10-year trough hit on Friday. The dollar last traded 0.05% lower against the Swiss franc at 0.8158.
Sterling pared losses from early in the session, easing just 0.06% to $1.3120. Against the yen, the dollar fell 0.62% to 142.62.
The euro rose 0.3% to $1.1396, hovering near Friday’s three-year high as investors flocked to the common currency following a crisis of confidence in the dollar.
“The market is re-assessing the structural attractiveness of the dollar as the world’s global reserve currency and is undergoing a process of rapid de-dollarisation,” George Saravelos, global head of FX research at Deutsche Bank, wrote in a client note.
“We think the process of de-dollarisation has more to go, but we are keeping a very open mind as to how this process plays out and what the ultimate new equilibrium in the global financial architecture will be.”
