An employee counts U.S. banknotes at a bank in Hanoi. Photo by VnExpress/Giang Huy
The U.S. dollar strengthened against the Vietnamese dong Friday morning as it headed for a weekly gain against major peers.
Vietcombank sold the greenback at VND26,282, a 0.02% increase from Thursday. The currency was mostly unchanged at around VND26,410 on the black market.
The State Bank of Vietnam hiked its reference rate by 0.02% to VND25,031.
Globally, the dollar was set to log its biggest weekly rise in over a month on Friday, as uncertainties about a raging war in the Middle East and the repercussions it could have on the global economy fuelled an appetite for traditional safe havens, Reuters reported.
The dollar index comparing the U.S. currency against six others is poised for a 0.5% climb this week. The conflict between Israel and Iran shows no signs of subsiding and market participants are nervous about potential U.S. intervention in the region.
The resultant recent spike in oil prices added a new layer of inflation uncertainty for central banks across regions which have been grappling with the potential repercussions of U.S. tariffs on their economies.
In early Asia trading, the euro inched up 0.16% to $1.151, while the dollar weakened against the yen by 0.17% to 145.23 per dollar.
The Swiss franc was flat at 0.816 per dollar on Friday but was set for its largest weekly drop since mid-April after the country’s central bank lowered borrowing costs. Swiss rates now stand at 0%.
