Dollar gains over dong on black market
The U.S. dollar rose against the Vietnamese dong on the black market Wednesday morning while trading near six-week lows against major peers.
The U.S. dollar appreciated by 0.34% to approximately VND26,200 on the black market, according to unofficial exchange points. The Vietcombank maintained its rate at VND26,460, while the State Bank of Vietnam raised its reference rate by 0.1% to VND25,405. Currency markets experienced a brief pause on Wednesday as pressure on the Japanese yen eased due to recent intervention efforts and U.S. support.
Meanwhile, the dollar hovered around six-week lows on fresh optimism regarding the Middle East. The U.S. dollar index, which tracks the currency against six major peers, remained relatively unchanged at 99.85, struggling to establish a clear direction after reaching a six-week low on Monday. The euro held steady at $1.1533, just below its recent six-week high of $1.1559, while the British pound remained consistent at $1.3453.
The Japanese yen showed a slight strengthening to 157.61 per U.S. dollar, following a drop of around 0.4% the previous day from its Monday high of 155.20. Market participants appear uncertain about the longevity of the impact from recent interventions, as noted by Vincent Chung, co-portfolio manager for diversified income bond strategy at T. Rowe Price.
Chung suggested that the market's base case is that intervention may decelerate the yen's depreciation rate rather than trigger a sustained reversal.
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