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 dropped against the Vietnamese dong Tuesday morning as it weakened against major peers after reaching a three-week peak.
Vietcombank sold the greenback at VND25,460, down 0.16% from Monday.
The State Bank of Vietnam raised its reference rate by 0.16% to VND24,360.
The dollar gained 0.74% on the black market to VND25,740.
Globally the dollar index was down 0.5% at 108.96. It had touched a three-week high of 109.88 in early trading, Reuters reported.
U.S. President Donald Trump has paused new tariffs on Mexico for one month, after the country agreed to reinforce its northern border with 10,000 National Guard members to stem the flow of illegal drugs.
“This delay to Mexico plays into this idea that the tariffs are just a transactional tool,” said Marc Chandler, chief market strategist at Bannockburn Global Forex.
“What it seems like the U.S. is trying to do is build its hegemonic power back and then force the rest of the world to pay for U.S. public goods, which is typically not how government works,” said Mark McCormick, head of foreign exchange and emerging market strategy at TD Securities.
Markets pared expectations of rate cuts from the Federal Reserve in the wake of the tariff news, with futures pricing in just a 50% chance of two cuts this year.
