Four thousand U.S. dollars are counted out by a banker counting currency at a bank in Westminster, Colorado Nov. 3, 2009. Photo by Reuters
The U.S. dollar went up against the Vietnamese dong on the black market Monday morning as it weakened against the Japanese yen.
The currency rose 0.11% from the weekend to VND26,450 at unofficial exchange points. Vietcombank kept the greenback stable at VND26,340.
The State Bank of Vietnam raised its reference rate by 0.02% to VND25,191.
Globally, the yen firmed against the dollar on Monday after Japan’s ruling coalition lost its majority in the upper house as investors braced for a period of policy paralysis and market disquiet in the world’s fourth-largest economy ahead of a deadline on tariff negotiations with the U.S., Reuters reported.
The yen was 0.4% firmer at 148.29 to the dollar. The euro was unchanged at $1.1622 in early trading, having dipped 0.5% last week and away from its recent near-four-year top of $1.1830. The dollar index was a fraction firmer at 98.465.
In Japan, the ruling coalition lost control of the upper house in an election on Sunday, further weakening Prime Minister Shigeru Ishiba’s grip on power as a tariff deadline looms.
“Ishiba will try to govern with support from some within the opposition, but this likely means a looser fiscal policy and is not good news for bond yields,” said Rodrigo Catril, a senior FX strategist at NAB.
“History also suggests that domestic political uncertainty tends to keep the BOJ on the sidelines, so the prospect of rate hikes is now set to be delayed for a little bit longer.”
