U.S. Dollar Rallies on Black Market, Boosted by Hawkish Fed Comments

On Thursday morning, the U.S. dollar experienced a rise against the Vietnamese dong in the black market, and also saw an increase over major currencies. The greenback saw a hike of 0.18% to VND27,800 at unofficial exchange points.

Meanwhile, Vietcombank maintained its rate at VND26,345. The State Bank of Vietnam also held its reference rate steady at VND25,091.

On a global scale, the dollar made gains following some hawkish comments from the Federal Reserve, settling near a two-week high at 99.09 against a selection of currencies. The Federal Reserve, on Wednesday, reduced rates by 25 basis points as anticipated and confirmed that it will conclude its balance sheet contraction on December 1.

In other currency news, the Australian dollar saw a rise of 0.2% to $0.6588. Similarly, the New Zealand dollar also observed a gain of 0.2% to $0.5775.

Questions & Answers

What was the increase of the U.S. dollar against the Vietnamese dong?
The U.S. dollar saw a rise of 0.18% against the Vietnamese dong on the black market.

What was the reaction of the Australian and New Zealand dollars to the news?
Both the Australian and New Zealand dollars rose 0.2%, to $0.6588 and $0.5775 respectively.

What measures did the Federal Reserve take on Wednesday?
The Federal Reserve lowered rates by 25 basis points as expected and announced that it will end its balance sheet drawdown on December 1.