The U.S. dollar declined against the Vietnamese dong on the black market Monday morning while holding firm against major currencies.
The greenback rose 0.1% to around VND26,476 at unofficial exchange points. Vietcombank kept its exchange rate steady at VND26,110.
The State Bank of Vietnam lowered its reference rate by 0.04% to VND25,064.
Globally, the dollar clung to its gains on Monday as investors weighed what a Federal Reserve under Kevin Warsh might look like, with his preference for a smaller balance sheet, Reuters reported.
The dollar index steadied at 97.09 after jumping 1% on Friday, when U.S. President Donald Trump’s pick of Warsh as the next Fed Chair sparked a wave of selling across risky assets and sent precious metals tumbling.
While investors think Warsh will be inclined to cut rates, they expect him to rein in the Fed’s balance sheet, which is typically supportive for the dollar as it reduces the money supply in the market.
The euro was firmly away from the $1.20 level as it last stood at $1.1868. Sterling was down marginally to $1.3685, while
The Japanese yen was down 0.14% to 154.99 per dollar on Monday, pressured in part by the dollar’s strength and Takaichi’s weekend comments which seemed to condone a weaker currency.
Elsewhere, the Australian dollar fell 0.18% to $0.6951. The Reserve Bank of Australia is expected to hike rates on Tuesday. The New Zealand dollar dipped slightly to $0.6019.
