The U.S. dollar rose against the Vietnamese dong on the black market amid an increase in global rates.
The greenback went up 0.95% to VND26,500 at unofficial exchange points. Vietcombank kept its rate unchanged at VND26,110.
Globally the U.S. dollar gained on Friday after former Federal Reserve Governor Kevin Warsh was selected to be the next Fed chair, and as the U.S. currency recovered from a sharp selloff earlier in the week that analysts say was overdone in the short-term, Reuters reported.
Marc Chandler, chief market strategist at Bannockburn Global Forex, said that Friday’s move higher in the dollar is likely driven at least in part by positioning heading into the announcement.
“The dollar was terribly oversold on the short-term momentum,” Chandler said. Meanwhile Warsh is “only one person…there’s no consensus to have lower rates anytime soon, even if we get a late cut or two at the end of the year, like the December dot plot suggested.”
The dollar index, which measures the greenback against a basket of currencies including the yen and the euro, rose 0.79% to 96.93, with the euro down 0.79% at $1.1874.
