U.S. Dollar banknotes are seen in this illustration taken July 17, 2022. Photo by Reuters
The U.S. dollar strengthened against the Vietnamese dong on the black market Saturday morning.
Unofficial exchange points sold the greenback at VND26,150, up 0.44% from Friday.
Vietcombank kept its reference rate unchanged at VND25,960, hovering around a historic peak.
The State Bank of Vietnam’s reference rate was steady at VND24,886.
The dollar has risen 2.34% against the Vietnamese dong since the beginning of the year.
Globally the U.S. dollar rebounded against major currencies such as the euro and yen on Friday after Federal Reserve Chairman Jerome Powell acknowledged the repercussions of larger-than-expected U.S. tariffs and signaled a cautious tone on future easing, Reuters reported.
The Australian dollar, meanwhile, seen as a liquid proxy for the yuan, hit five-year lows against the greenback after China announced additional tariffs on U.S. goods on Friday.
“This is a bit of a more hawkish reaction that he’s focusing on the inflationary impact of tariffs. The U.S. economy has been dealing with higher inflation, and because the U.S. is the one doing the tariffs and it will apply to all imports, it’s likely to have more impact on the U.S.,” said Peter Vassallo, FX portfolio manager at BNP Paribas Asset Management.
The dollar index, a measure of the currency against a basket of six major peers, had plunged 1.9% on Thursday, its worst day since November 2022. It rose 0.98% to 103 in afternoon trading on Friday.
