Dollar falls against dong

Vietcombank sold the dollar at VND23,860 Wednesday, down 0.08% from Tuesday.

Eximbank sold the greenback at VND23,840, down 0.29%.

The rate at Techcombank is VND23,860, down 0.21%, and at ACB is VND24,000, down 0.41%.

The State Bank of Vietnam (SBV)’s reference rate is at VND23,641, down 0.01%.

The greenback is sold at VND24,100 on the black market, down 0.33%.

The dollar has increased against the dong by 4.1% since the beginning of the year.

The dollar index edged up 0.1%, after falling in last session, as the yen jumped after the Bank of Japan stunned markets with a surprise policy tweak, Reuters reported.

Last week, Federal Reserve Chair Jerome Powell said the U.S. central bank will deliver more rate hikes next year, even as the economy slips towards a possible recession.

Rate hikes typically weigh on gold but as we enter into late cycle of Fed tightening, gold can recover, said OCBC FX strategist Christopher Wong.

“However, a more material recovery in prices would require more than just a calibration in Fed tightening, probably need the Fed to pause and perhaps cut rates.”