U.S. dollar bills. Photo by Unsplash/Colin Watts
The U.S. dollar rose against the Vietnamese dong Tuesday morning.
Vietcombank sold the greenback 0.008% higher at VND26,394.
On the black market the dollar dropped 0.38% to VND26,420.
Globally the dollar nursed losses on Tuesday on rising investor optimism of a deal being struck to reopen the crucial Strait of Hormuz and end the three-month-long Iran war, although fresh U.S. attacks on Iranian targets weighed on sentiment, Reuters reported.
Despite low odds of an imminent deal, hopes of peace have pushed oil below US$100 a barrel, eased pressure on emerging-market currencies, and boosted risk sentiment.
The euro held onto its gains to trade at $1.16365 on Tuesday, while the Japanese yen fetched 158.95 per U.S. dollar. U.S. markets were closed on Monday for a holiday. Against a basket of currencies, the dollar was at 99.031.
“Markets are right to price some optimism because even a path toward reopening Hormuz lowers the extreme tail risk around oil, inflation and global growth,” said Charu Chanana, chief investment strategist at Saxo in Singapore.
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