Dollar strengthens against dong

Vietcombank’s dollar selling rate increased by 0.04% from Tuesday to VND25,468.

The greenback slid 0.35% to VND25,870 on the black market.

The State Bank of Vietnam (SBV)’s reference rate is at VND24,256, up 0.05%.

Since the beginning of the year, the dollar has increased against the dong by 4.29%.

Globally, the dollar was mixed on Wednesday after a modest but short-lived boost following better-than-expected U.S. retail sales data, as traders focused on the prospect of Federal Reserve rate cuts as early as September, Reuters reported.

Data on Tuesday showed U.S. retail sales were unchanged in June as a drop in receipts at auto dealerships was offset by broad strength elsewhere, a display of consumer resilience that bolstered economic growth prospects for the second quarter.

While the dollar initially got a lift on the back of the data, it failed to sustain its gains as the report did little to alter market bets for a Fed cut in September, which is now fully priced in.

Against the greenback, the euro last bought $1.0897, hovering near a roughly four-month high hit at the start of the week.

The dollar index languished near a one-month low and last stood at 104.26, while the Australian dollar fell 0.05% to $0.6730.

The yen was last 0.1% lower at 158.47, as traders remained on alert for any intervention from Japanese authorities to prop up the currency after they had likely done so last week.