An employee counts U.S. banknotes at a bank in Hanoi. Photo by VnExpress/Giang Huy
The U.S. dollar slipped against the Vietnamese dong Monday morning while strengthening against most Asian currencies.
Vietcombank sold the dollar at VND25,440, down 0.12% from the weekend. The greenback rose by 0.2% to VND25,670 on the black market.
The State Bank of Vietnam lowered its reference rate by 0.06% to VND24,263.
The dollar has increased by 4.18% against the dong since the beginning of the year.
Globally, worries about Donald Trump’s victory in the U.S. election kept Asian currencies under pressure on Monday, Reuters reported.
Asian currencies were mostly weaker between 0.1% to 0.4% while the dollar index was little changed at 105, hovering close to a four-month high hit last week in the wake of the Trump win.
The dollar rose 0.5% to 153.39 yen, reversing some of the weakness from Friday, when the pair tracked long-term U.S. Treasury yields lower .
The rupee dipped to a low of 84.3875 in early trading, eclipsing its previous all-time low of 84.38 hit on Friday. The currency quoted at 84.37 as of the time of publishing.
The euro was flat at $1.0721, sitting not far from a four-month low. Sterling was little changed at $1.2922.
Analysts assume Trump’s policies would put upward pressure on U.S. inflation and bond yields, while limiting the Federal Reserve’s scope to ease policy.
Data will also be influential as U.S. consumer prices are due Thursday and a core reading above the 0.3% forecasted would further reduce the chance of a December easing.
All this was seen as bullish for the dollar over the long term, though it was yet to be seen what Trump’s policies would actually be in practice.
