A bank employee counts U.S. dollar bills in Hanoi. Photo by VnExpress/Giang Huy
The U.S. dollar went up against the Vietnamese dong on the black market Wednesday morning while heading for the worst yearly performance in over 20 years against major peers.
The greenback gained 0.34% from Tuesday to around VND26,992 at unofficial exchange points. Vietcombank maintained its exchange rate at VND26,403.
The State Bank of Vietnam kept its reference rate unchaged at VND25,146.
Globally, the U.S. dollar was headed for its worst annual performance in more than two decades on Wednesday as investors wagered the Federal Reserve would have room to cut rates further next year even as some of its peers looked set to hike, Reuters reported.
The dollar has had a tumultuous year, whipsawed by President Donald Trump’s chaotic tariffs that sparked a crisis of confidence in U.S. assets earlier this year, while his growing influence over the Fed has also raised concerns about its independence.
Against a basket of currencies, the dollar fell to a two-and-a-half-month low of 97.767, and was on track to lose 9.9% for the year, which would mark its steepest annual drop since 2003.
In contrast, the euro, which rose to a three-month high of $1.1806, is up just over 14% for the year thus far, putting it on track for its best performance since 2003.
The New Zealand dollar similarly touched a 2-1/2-month high of $0.58475, having risen 4.5% for the year thus far. Sterling was up at a three-month peak of $1.3531 and has gained more than 8% for the year.
The Japanese currency was last 0.4% stronger at 155.60 per dollar, having risen more than 0.5% in the previous session.
