Dollar continues to weaken on black market
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The U.S. dollar fell against the Vietnamese dong on the black market Monday morning. Unofficial exchange points sold the greenback at VND23,700, down 0.04% from Sunday. Techcombank raised its rate by 0.01% to VND23,818. Vietcombank maintained it at VND23,810.
The State Bank of Vietnam decreased its reference rate by 0.08% to VND23,701.
The dollar has gained over the dong by 0.34% since the beginning of the year.
Globally a bruised dollar took respite on Monday after suffering its worst weekly drop of the year, as traders waited on economic data and policy decisions before selling it down any further.
Chinese growth data and loan-rate settings are due later in the session, ahead of U.S. retail sales and British inflation later in the week and a slew of central bank meetings next week.
The euro, which jumped 2.4% last week to a 16-month high, held just below that peak at $1.1228. The yen, also up 2.4% last week, held at 138.69 per dollar.
The dollar’s slide began with yen buying, as investors unwound yen-funded positions in emerging markets, but extended sharply after softer-than-expected U.S. inflation data leant support to wagers that U.S. interest rates will soon peak.
Questions & Answers
Q.Which financial institutions adjusted their exchange rates for the U.S. Dollar on Monday?
Which financial institutions adjusted their exchange rates for the U.S. Dollar on Monday?
Techcombank raised its rate by 0.01% to VND23,818, while Vietcombank maintained its rate at VND23,810. The State Bank of Vietnam decreased its reference rate by 0.08%.
Q.What caused the dollar's recent slide against other major currencies globally?
What caused the dollar's recent slide against other major currencies globally?
The dollar's slide began with yen buying as investors unwound yen-funded positions. It extended sharply after softer U.S. Inflation data suggested U.S. Interest rates might soon peak.
Q.How has the dollar performed against the Vietnamese dong overall this year, despite the recent black market drop?
How has the dollar performed against the Vietnamese dong overall this year, despite the recent black market drop?
Despite Monday's drop on the black market, the dollar has gained 0.34% against the Vietnamese dong since the beginning of the year.
Q.What global economic events are traders awaiting that could impact the dollar's value further?
What global economic events are traders awaiting that could impact the dollar's value further?
Traders are waiting for Chinese growth data and loan-rate settings, U.S. Retail sales, British inflation, and a series of central bank meetings next week.
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