Vietnam Dong Weakens Against US Dollar, Defies Global Decline
Vietnam's currency softened against the US dollar Monday, even as the greenback lost ground against major global peers. The State Bank of Vietnam adjusted its reference rate for the local currency.
Dong Depreciates Locally
The Vietnamese dong depreciated against the US dollar on Monday morning. Vietcombank sold dollars at VND26,400, a 0.27% increase from the weekend. The State Bank of Vietnam (SBV) lifted its reference rate by 0.1% to VND25,586. Black market trading saw the dollar at around VND25,950.
This local strengthening of the dollar contrasted with its performance elsewhere, suggesting specific domestic pressures on the dong.
Global Dollar Weakens
Globally, the US dollar index, which measures its value against six major currencies, fell 0.1% to 99.519. This level was near its lowest point this month. The yen gained 0.2% against the dollar, reaching 158.965 yen. This occurred despite weaker-than-expected Japanese gross domestic product (GDP) data. Traders revised down expectations for Federal Reserve (Fed) interest rate increases this year, Reuters reported.
Major Currencies Gain
The euro also strengthened against the dollar, rising 0.1% to $1.1582. This brought it near a two-month high. The British pound gained 0.2% to $1.3556, approaching its firmest levels since May. The dollar remained flat against the Chinese yuan, trading offshore at 6.7409 yuan. This broad dollar weakening underscores the dong's unique position among Asian currencies on Monday.
A weaker dong increases import costs for Vietnamese businesses. Conversely, it could make Vietnamese exports more competitive on international markets. The State Bank of Vietnam's rate adjustment shows its response to these currency movements. Businesses with foreign currency exposures should monitor the SBV's actions closely for further policy shifts.
This article is journalism, not investment advice; consult a licensed professional before making financial decisions. Market data is indicative, may be delayed, and should be verified with your broker or exchange before use.
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