An employee counts U.S. banknotes among Vietnamese banknotes at a bank in Hanoi. Photo by Reuters
The U.S. dollar increased against the Vietnamese dong Monday as it strengthened against several major currencies.
Vietcombank sold the greenback at VND26,361, a 0.004% uptick over the weekend. The currency went up 0.23% to around VND26,850 on the black market.
The State Bank of Vietnam raised its reference rate by 0.004% to VND25,106.
Globally, the safe-haven dollar advanced broadly in early Asian trade on Monday, as peace talks between the U.S. and Iran broke down and the U.S. Navy prepared a blockade of Iranian ports, Reuters reported.
The U.S. dollar index, which measures the greenback’s strength against a basket of six currencies, held steady at 99.056, near its highest level since April 7.
The euro was down 0.3% at $1.1684, while the British pound fell 0.5% to $1.3398. The risk-sensitive Australian dollar was 0.6% lower at $0.7030, and the New Zealand dollar was off 0.4% at $0.5816. Against the yen, the U.S. dollar was up 0.4% at 159.83 yen.
U.S. President Donald Trump said on Sunday the U.S. Navy would start blockading the Strait of Hormuz after marathon talks with Iran failed to reach a deal to end the war, jeopardizing a fragile two-week ceasefire.
“Early and thin FX trading this morning is showcasing a risk-off mood, with the broad-based rally in the USD in response,” analysts from Westpac wrote in a research note.
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