Waning Dollar Takes a Dive Against Vietnamese Dong Amid Global Currency Shifts
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The US dollar experienced a dip in value against the Vietnamese dong on Monday, hovering around a four-month low in comparison to major currencies. Vietcombank listed a slight decrease of 0.05% over the weekend in the exchange rate of the US dollar, trading at VND26,368. The black market, on the other hand, observed a marginal increase of 0.12%, with the dollar being exchanged approximately around VND26,447.
Global Currency Market Scenario
The currency market worldwide witnessed the yen gaining strength on Monday, which subsequently led to a lower valuation of the dollar across various markets. This development has emerged amidst speculations over potential risks of the first joint US-Japan currency intervention in 15 years, which has kept investors on their toes.
The US dollar index, a tool for measuring the strength of the US dollar against six major currencies, saw a decline of 0.1%, bringing it dangerously close to a four-month low, at 97.082.
The yen appreciated as much as 1.2%, reaching 153.89 per dollar, its highest value since November. Concurrently, the euro also made strides, hitting a four-month high of $1.1898 and later settling at an increase of 0.4% at $1.18665.
Other Currency Movements
In addition to these movements, the British pound sterling also saw a slight increase of 0.1% to reach $1.36615. Meanwhile, the Australian dollar and the New Zealand dollar appreciated by 0.3% and 0.2% to touch $0.69165 and $0.59605 respectively.
According to Marc Chandler, chief market strategist at Bannockburn Capital Markets in New York, the dollar was already vulnerable to fluctuations. However, the increase in the yen’s value served as the catalyst for market-wide selling of the dollar.
Questions & Answers
Q.What was the exchange rate of the US dollar in Vietcombank and the black market?
What was the exchange rate of the US dollar in Vietcombank and the black market?
The US dollar was traded at VND26,368 in Vietcombank, marking a 0.05% decrease. Conversely, on the black market, it saw a 0.12% increase, being traded around VND26,447.
Q.What triggered the market-wide selling of the US dollar?
What triggered the market-wide selling of the US dollar?
The primary trigger for the market-wide selling of the US dollar was the rising strength of the yen, according to Marc Chandler, chief market strategist at Bannockburn Capital Markets in New York.
Q.What changes did other major currencies witness?
What changes did other major currencies witness?
The yen rose by 1.2% to 153.89 per dollar, the euro increased by 0.4% to $1.18665, the British pound sterling increased by 0.1% to $1.36615, the Australian dollar increased by 0.3% to $0.69165, and the New Zealand dollar increased by 0.2% to $0.59605.
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