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 on the black market Saturday morning.
Unofficial exchange points sold the greenback 0.34% lower at VND26,340.
Vietcombank kept its rate unchanged at VND26,130.
Globally the dollar dropped across the board on Friday, as investors dumped the currency after U.S. President Donald Trump once again ratcheted up his trade war, recommending that the European Union be hit with 50% tariffs beginning June 1, Reuters reported.
The dollar index, which measures the greenback against a basket of currencies, fell 0.8% to 99.09, hitting a three-week trough.
For the week, the greenback was down 1.9%, on track for its biggest weekly percentage decline since early April.
Jayati Bharadwaj, a global FX strategist at TD Securities, said the dollar and stocks selling off in unison highlighted the U.S. currency’s failure this year to act as a haven currency.
“The dollar’s correlation with equities is also broken … it’s flipped completely in the last few weeks and we expect it to stay that way. That’s because the risks that we’ve been dealing with since the start of the year are U.S.-centric,” she added.
