An employee counts U.S. banknotes at a bank in Hanoi. Photo by Read/Giang Huy
The U.S. dollar plunged against the Vietnamese dong and major peers, especially the Japanese yen, on Friday morning.
Vietcombank sold the greenback at VND25,250, down 0.28% from Thursday. On the black market, the greenback dropped 0.2% to VND25,550.
The State Bank of Vietnam lowered its reference rate by 0.01% to VND24,325.
Globally, the yen rose after the Bank of Japan (BOJ) hiked rates on Friday and revised up its inflation forecasts, Reuters reported.
The Bank of Japan raised interest rates to their highest since the 2008 global financial crisis, underscoring its confidence that rising wages will keep inflation stable around its 2% target.
The yen rose around 0.5% to 155.32 per dollar after the decision, while the two-year Japanese government bond (JGB) yield rose to 0.705%, the highest since October 2008.
The greenback extended losses from earlier in the session to fall 0.35% to 107.77 against a basket of currencies, and was set to lose 1.5% for the week.
The euro, meanwhile, rose 0.32% to $1.0448 and was headed for a roughly 1.7% weekly gain, its best since November 2023.
Sterling advanced 0.38% to $1.2399 and was similarly poised for a rise of 1.9% for the week, snapping three straight weeks of losses.
Also adding to headwinds for the dollar were comments from Trump demanding that the Federal Reserve cut interest rates, arguing he understands monetary policy better than those charged with setting it.
“The Trump comments … are a reminder that we’re just going to have this constant source of volatility coming from off-the-cuff comments, and of course, it does on paper challenge a little bit of that Fed independence,” said Rodrigo Catril, senior FX strategist at National Australia Bank.
Comments are closed.