U.S. banknotes at a bank in Hanoi. Photo by VnExpress/Giang Huy
The U.S. dollar strengthened against the Vietnamese dong Friday morning as it gained over major currencies.
Vietcombank sold the greenback at VND25,710, a 0.12% increase from Thursday. On the black market, the dollar held firm at VND25,840.
The State Bank of Vietnam hiked its reference rate by 0.08% to VND24,779.
Globally, the U.S. dollar was broadly firmer on Friday with the euro pulling further away from a five-month peak as markets grappled with escalating global trade tensions and risks of a sharp economic downturn, Reuters reported.
Sowing more volatility across markets, U.S. President Donald Trump threatened to hit Europe with a 200% tariff on wine, cognac and other alcohol imports.
The intensifying global trade skirmish has fueled uncertainty and fears about a potentially sharp economic slowdown, with the S&P 500 tumbling into correction territory on Thursday as investors piled into U.S. Treasuries and other safe haven assets.
The euro edged down to $1.0847 after sliding further off Tuesday’s five-month peak the previous day as the EU-U.S. trade spat rattled markets and Germany struggled to pass a massive spending proposal.
The yen walked back some of its gains on Friday, with the dollar trading at 148.32 yen, up 0.35%.
The dollar index, which measures the greenback against a basket of currencies including the yen and the euro, rose 0.1% to 103.95 after two straight days of gains.
The Canadian dollar wallowed at 1.4440 per U.S. dollar, with Canada caught in the tariff crossfire.
The risk-sensitive Australian dollar steadied at $0.6284 after slipping on Thursday, while the New Zealand dollar was up 0.1% at $0.5702.
