Dollar gains over dong
The U.S. dollar rose against the Vietnamese dong Friday morning while heading for a weekly loss against major peers.
Over the weekend, the Vietnamese dong experienced fluctuations against the US dollar. The official rate from Vietcombank rose slightly to VND26,285, a 0.1% increase from the previous day. Meanwhile, the black market rate saw a modest decline to around VND25,810, a 0.23% drop. The State Bank of Vietnam adjusted its reference rate by 0.04% to VND25,605.
Globally, Asian stock markets enjoyed a boost on Friday, driven by a broader market rally and anticipation of U.S. jobs data. This optimism contributed to a softer dollar, which was trading at 98.96, down 0.6% overnight. The dollar is expected to lose 0.7% for the week. This dollar weakness has fueled a rally in the Japanese yen, which has climbed 2.6% this week to 155.7 per dollar, nearing the 155.2 level.
Analysts are now focusing on upcoming economic data, including nonfarm payrolls and CPI inflation, which could provide further clues about the Federal Reserve's monetary policy direction. A September rate hike or multiple rate hikes are now widely expected, with markets pricing in a 75% chance of a September move and a full expectation of a hike in October.
This could lead to either a more aggressive rate increase or consecutive tightening measures. Analyst Tony Sycamore from IG noted that while intervention or price checks cannot be entirely ruled out, it may also be a strategic move by authorities in anticipation of potentially soft nonfarm payrolls data and a hawkish stance from the Bank of Japan in the coming fortnight.
Written by urgent.news from VnExpress Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
