U.S. Dollar banknotes are seen in this illustration taken July 17, 2022. Photo by Reuters
The U.S. dollar inched down against the Vietnamese dong on Monday while rising against major peers.
Vietcombank sold the greenback at VND26,282, down 0.01% from the weekend. The currency dipped 0.02% to VND26,390 on the black market.
The State Bank of Vietnam reduced its reference rate by 0.01% to VND25,028.
Globally, the U.S. dollar firmed on Monday as anxious investors sought safety, although the restrained moves suggest markets were waiting for Iran’s response to U.S. attacks on its nuclear sites that have exacerbated conflict in the Middle East, Reuters reported.
In currency markets, the euro was 0.33% lower at $1.1484, while the Australian dollar, often seen as risk proxy, hit a one-month low and was last 0.67% weaker at $0.6408.
That left the dollar index, which measures the U.S. currency against six other units, 0.12% higher at 99.037. Sterling was 0.26% lower at $1.3416, while the New Zealand dollar sank 0.68% to $0.5926.
The dollar was up 0.52% against the yen at 146.81 after touching a one-month high earlier in the session. The U.S. currency cast a shadow on other Asian currencies, including the rupiah, ringgit and the Philippine peso.
“Markets appear to be treating the U.S. strikes on Iran as a contained event for now, rather than the start of a broader war,” said Charu Chanana, chief investment strategist at Saxo.
“The muted haven flows suggest investors are still assuming this is a one-off escalation, not a disruption to global oil supply or trade.”
