The U.S. dollar weakened against the Vietnamese dong Friday morning, paving the way for a weekly loss against several major currencies. At Vietcombank, the dollar was sold at VND26,310, representing a slight decline of 0.04% from the previous day. Meanwhile, the currency appreciated by 0.06% at unofficial exchange points, trading around VND26,465.
The State Bank of Vietnam adjusted its reference rate downward by 0.008%, bringing it to VND25,164.
On the global stage, the dollar edged away from two-week lows but was poised for its most significant weekly drop in a month, as investors awaited developments in U.S. tariff negotiations before the August 1 deadline. Eyes are also on upcoming central bank meetings, according to reports from Reuters.
The dollar index, which gauges the U.S. currency against six others, stood at 97.448 and is set for a 1% drop this week—the weakest showing in a month. The Japanese yen traded at 147.20 to the dollar, preparing for a weekly gain of nearly 1%.
The euro held steady at $1.174, lingering not far from its recent peak of $1.183, marking a nearly four-year high from earlier this month. So far this year, the euro has climbed 13.5%, benefiting from tariff policies that tamp down the dollar’s appeal.
“Market attention is squarely on next week’s Fed meeting. We expect Fed Chair Jerome Powell to reiterate a patient, data-dependent approach, although he is unlikely to signal any immediate cuts,” noted Prashant Newnaha, senior Asia-Pacific rates strategist at TD Securities.
Questions & Answers
How has the U.S. dollar performed this week against the Vietnamese dong?
The U.S. dollar experienced a decline against the Vietnamese dong, being sold at VND26,310, and is anticipated to close the week with and overall loss against major currencies.
What factors are influencing the dollar’s performance?
The dollar’s dip is attributed to ongoing U.S. tariff negotiations and anticipation surrounding upcoming central bank meetings that could impact monetary policy.
What is the outlook for the euro amidst these currency fluctuations?
The euro remains resilient, holding steady against the dollar and benefiting from strong performance in the face of U.S. tariff policies, which have diminished the dollar’s attractiveness.
www.retailnews.asia