Dollar slips on black market
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The U.S. dollar declined slightly against the Vietnamese dong on the black market Saturday morning.
Unofficial exchange points sold the greenback at VND25,980, down 0.15% from Friday.
Vietcombank maintained its rate at VND25,473.
The State Bank of Vietnam’s reference rate was stable at VND24,245.
The dollar has gained over the dong by 4.31% since the beginning of the year.
Globally the U.S. dollar slipped on Friday after data showed inflation in the world’s largest economy subsided last month, cementing expectations the Federal Reserve will start cutting interest rates this year, Reuters reported.
The dollar initially fell against the yen, the currency pair most sensitive to U.S. economic data because of a high, positive correlation to Treasury yields. The greenback, however, edged higher to trade flat on the day, with investors still focused on the wide interest rate differential between the United States and Japan.
The dollar was last up slightly against the Japanese unit at 160.815 yen, after earlier hitting a 38-year high of 161.27 yen. Traders remained on high alert for intervention from Japanese authorities to boost its currency.
Questions & Answers
Q.By how much did the U.S. Dollar fall against the Vietnamese dong on the black market?
By how much did the U.S. Dollar fall against the Vietnamese dong on the black market?
The unofficial exchange rate for the U.S. Dollar was VND25,980 on Saturday morning. This represented a 0.15% decrease from its price on Friday. Official bank rates remained unchanged on Saturday.
Q.What is the reason for the global U.S. Dollar's slip?
What is the reason for the global U.S. Dollar's slip?
The U.S. Dollar slipped globally after data indicated that inflation in the world’s largest economy subsided last month. This strengthened expectations that the Federal Reserve will begin cutting interest rates this year.
Q.Why did the U.S. Dollar initially fall against the yen after the U.S. Inflation data?
Why did the U.S. Dollar initially fall against the yen after the U.S. Inflation data?
The U.S. Dollar initially fell against the yen because the currency pair is highly sensitive to U.S. Economic data. This sensitivity stems from a strong, positive correlation between the yen and Treasury yields.
Q.What is preventing the U.S. Dollar from falling further against the Japanese yen?
What is preventing the U.S. Dollar from falling further against the Japanese yen?
Despite earlier movements, the dollar edged higher to trade flat on the day against the yen. This was because investors remained focused on the significant interest rate differential between the United States and Japan.