Dollar weakens against dong

The Vietnamese dong has gained strength against the US dollar, according to latest figures from Vietcombank. The dong sold for VND25,840 per dollar, a slight decrease from the previous day's VND25,837 reference rate. Meanwhile, the unofficial market saw the dong trade at VND26,140 against the dollar, marking a 1.04% increase. Globally, the dollar has reached a 19-month high following a series of strong gains, driven by expectations of a larger Federal Reserve rate hike.

The dollar index, which tracks the greenback's value against a basket of currencies, has remained at its highest level since April 2025, slipping just 0.05% to 103.17. Meanwhile, the euro has weakened, dropping 0.1% to $1.1049, nearing its lowest point against the dollar since April 2025. Over the past week, the euro has declined 0.8%, on track for its biggest weekly loss since late September.

The Japanese yen has remained relatively stable, trading around 159.875 per dollar, close to its lowest level since early September. This market movement has raised concerns about potential intervention by market participants. Analyst Carol Kong from Commonwealth Bank of Australia noted that a further sharp decline in equity markets could negatively impact the US dollar.

However, if there is further support for a 50-basis-point interest rate hike, the dollar could see additional upside.