A money changer counts U.S. dollar banknotes at a currency exchange office in Ankara, Turkey Nov. 11, 2021. Photo by Reuters
The U.S. dollar dropped against the Vietnamese dong and tumble to the lowest in years against major peers Thursday morning.
Vietcombank lowered its rate by 0.06% to VND26,290.
The State Bank of Vietnam’s reference rate fell by 0.008% to VND25,053.
On the black market the greenback gained 0.19% to VND26,470.
Globally the dollar dropped to multi-year lows against the euro and Swiss franc on Thursday as concerns about the future independence of the U.S. Federal Reserve undermined faith in the soundness of the country’s monetary policy, Reuters reported.
The dollar was under broad pressure as the euro gained 0.4% to $1.1710, its highest since September 2021. The break of resistance at $1.1692 opened the way to the next chart target up at $1.1909.
Sterling rose 0.3% to $1.3723, its highest since January 2022, while the dollar was at its lowest in more than a decade on the Swiss franc at 0.8030. The franc also struck a record peak on the yen around 180.55.
Markets have nudged up the chance of a rate cut at the Fed’s next meeting in July to 25%, from just 12% a week ago, and are pricing in 64 basis points of cuts by year-end, up from around 46 basis points last Friday.
“While this stands to be the latest hammer blow to the dollar delivered by the hands of the White House, I do expect it to gain some support in the coming sessions from month-end and quarter-end rebalancing flows,” said Tony Sycamore, an analyst at IG.
