Dollar slides against dong

The U.S. dollar experienced a decline against the Vietnamese dong, with the Vietnamese currency selling at VND26,320, marking a 0.34% decrease over the weekend. On the shadow market, the dong fell further to VND25,830, a 0.65% reduction. The State Bank of Vietnam increased its benchmark rate by an additional 0.1% to VND25,491.

Internationally, the dollar hovered near a two-month low against key currencies on Monday, as investors anticipated the release of inflation data for clues on the Federal Reserve's future interest rate path, according to Reuters. The dollar index, which measures the dollar's strength against six major currencies, remained stagnant at 99.6, nearing its lowest point since mid-June 2.

The euro showed a slight gain, reaching $1.1558, close to its strongest level since mid-June. Meanwhile, the British pound held steady at $1.3490, near a five-week high. The Japanese yen remained stable at 157.90 per dollar, after initially losing some gains driven by central bank intervention.

Earlier in the week, data revealed that the U.S. economy unexpectedly shed jobs in July, and the gains from the previous two months were revised downward significantly. This weakened labor market data reduced expectations for a Federal Reserve rate hike next month. The weaker labor-market signal contributed to the dollar's decline.

However, Geoff Yu, a senior EMEA market strategist at BNY, noted that perceptions surrounding the upcoming U.S. inflation data will likely be the most influential factor affecting currencies this week.