An employee counts U.S. banknotes at a bank in Hanoi. Photo by VnExpress/Giang Huy
The U.S. dollar rose against the Vietnamese dong on the black market Wednesday morning as it slipped against the yen.
The greenback was up 0.19% to around VND25,760 at unofficial exchange points. The curreny was stable at VND26,160 at lender Vietcombank.
The State Bank of Vietnam lowered its reference rate by 0.04% to VND25,594.
Globally the Japanese yen steadied near its strongest level since February on Wednesday, keeping the dollar on the defensive as traders grappled with oil prices pushing towards $100 per barrel in the face of a widening war in the Middle East, Reuters reported.
The dollar index, which measures the U.S. currency against six of its key rivals, was at 98.15, close to its lowest level in almost two weeks.
The yen was firmer at 153.65 per U.S. dollar, close to the seven-month high of 152.89 it hit on Tuesday. The euro was steady at $1.1631, while sterling last bought $1.3546.
OCBC strategists said the latest Middle East escalation keeps Fed policy implications from higher energy prices in focus, particularly after last week’s strong U.S. payrolls report revived expectations of another rate hike.
“For now, higher oil and yields may help limit USD downside, but we suspect a more decisive move will require confirmation from the upcoming inflation data,” they said in a note.