Dollar slides against dong
The U.S. dollar slid against the Vietnamese dong on Wednesday while edging down against major currencies.
The Vietnamese dong is witnessing a decline against the US dollar, according to the latest wire report. Vietcombank has sold the greenback at VND26,080, a slight drop from the previous trading day. This drop in the dong's value is mirrored at unofficial exchange points, where the currency is trading at around VND26,050, marking a 0.42% decrease.
The State Bank of Vietnam has increased its reference rate by 0.05% to VND25,646 in response to this trend. Globally, the dollar has been struggling on Wednesday, with traders eagerly anticipating news about the timing for interest rate hikes. The dollar index, which gauges the greenback's strength against a basket of currencies, has slipped 0.09% to 102.09, following a 0.35% decline on Tuesday.
Meanwhile, the euro has gained 0.09% to $1.1208, while the yen has risen 0.08% to 158.19 per dollar. The British pound has also strengthened by 0.15% to $1.3272. Market attention is now shifting towards the release of US consumer price index data and speeches from Federal Reserve policymakers, which could provide clarity on the outlook for interest rates.
The concern is the possibility of a core CPI surprise to the upside due to robust consumer demand and rising costs, which could push up market expectations for an October Fed hike and strengthen the USD. According to Carol Kong, a currency strategist at Commonwealth Bank of Australia, this is a key issue to monitor.
Written by urgent.news from VnExpress Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
