U.S. Dollar banknotes are seen in this illustration taken July 17, 2022. Photo by Reuters
The U.S. dollar fell against the Vietnamese dong Wednesday morning while inching down against major peers.
Vietcombank sold the dollar at VND25,310, down 0.2% from Tuesday. The greenback held firm at around VND25,740 on the black market.
The State Bank of Vietnam raised its reference rate by 0.14% to VND24,395.
Globally, the U.S. dollar edged lower on Tuesday as President Donald Trump’s tariff threats were interpreted more as a negotiating tactic rather than an end goal, a day after he suspended planned measures against Mexico and Canada, Reuters reported.
However, the new Trump administration imposed additional 10% tariffs on imports from China effective from early Tuesday and currency analysts said they expected high sensitivity to tariff developments and volatility to persist.
The U.S. dollar index, a measure of the value of the greenback relative to a weighted basket of six major foreign currencies, was down 0.56% at 107.97 while the Canadian dollar was weaker and the Mexican peso was stronger.
The Canadian dollar lost 0.81% to C$1.43 against its U.S. counterpart, following a sharp rebound from a low of C$1.4792 on Monday, the weakest level since 2003. The Mexican peso rose 1.06% to 20.546, after jumping over 1.5% the day before.
The euro rose 0.37% to $1.038, with Washington warning that the European Union may be next in line for trade levies, which are widely expected to push up U.S. inflation, supporting the dollar by keeping U.S. interest rates higher for longer.
The U.S. dollar was nearly up 0.3% at 154.290 yen, with the Japanese currency seen as a safe-haven currency and the greenback less appealing after recent rises.
