Dollar dips against dong
The U.S. dollar edged lower against the Vietnamese dong Monday morning while easing against major currencies.
The Vietnamese dong witnessed a slight dip against the U.S. dollar on Monday, falling to VND26,250 from VND26,275 over the weekend. The State Bank of Vietnam adjusted its reference rate by a minimal 0.04% to VND25,605. Meanwhile, the dollar's position globally appeared precarious, with the currency down 0.07% against a basket of currencies to 99.09, near its recent low of 98.558, according to Reuters.
The dollar's weakness was not isolated, as it trailed behind a 0.2% increase in the yen's value to 155.88 per dollar and remained largely unchanged against the euro at $1.1618. The British pound also showed little movement, hovering around $1.3519.
The dollar's decline seemed to be a reaction to the recent U.S. jobs report, which did not provide the boost expected. Traders are now anticipating inflation data for the week, which could significantly influence the Fed's decision-making process.
According to Elias Haddad, global head of markets strategy at BBH, a strong Consumer Price Index (CPI) print could solidify the case for a September interest rate hike and strengthen the U.S. dollar. On the other hand, a weaker-than-expected reading might bolster arguments for maintaining the status quo, potentially leaving the dollar exposed to a more dovish Federal Reserve.
Even if a September rate hike is confirmed, Haddad doubts the dollar will achieve new cyclical highs, given the tightening measures of other major central banks, which limit policy divergence.
Written by urgent.news from VnExpress Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
