The U.S. dollar declined marginally against the Vietnamese dong on the black market Saturday morning.
Unofficial exchange points sold the greenback 0.04% lower at VND26,390.
Globally the dollar strengthened for a fifth straight day on Friday and was set for its largest weekly percentage rise in two months, as market expectations for the Federal Reserve’s monetary policy path tilt further toward possible rate hikes, Reuters reported.
The dollar index, which measures the greenback against a basket of currencies, gained 0.32% to 99.27 after climbing to 99.302, with the euro down 0.39% at $1.1623 after hitting a five-week low of 1.1617.
“It’s looking to me that the bond market’s leading the charge on this one, as they often do, that they’re starting to get worried about inflation,” said Joseph Trevisani, senior analyst at FXStreet in New York.
“If you’re going to get an oil price in WTI from 95 to 105, then a lot of inflation expectations have to be reset, and in fact, they’re resetting. Well, if they’re resetting, the bond market’s going to do exactly the same thing, and that’s what the bond market is doing.”
