Dollar tumbles at banks

Vietcombank sold the dollar at VND23,750 Tuesday, down 0.38% from Monday.

Eximbank sold the greenback at VND23,750, down 0.71%. The rate at Techcombank is VND23,770, down 0.71%.

The State Bank of Vietnam maintained its reference rate at VND23,655.

The dollar is sold at VND24,230 on the black market, up 0.04%.

The dollar has gained over the dong by 3.62% since the beginning of the year.

The U.S. dollar has been supported by high and rising interest rate expectations as the Fed has hiked its benchmark funds rate to counter inflation, leaving the currency vulnerable to selling if inflation seems to be cooling, Reuters reported.

The dollar index hovered at 105.01 on Tuesday, down from a 20-year high of 114.78 in late September.

Market projections for the peak in U.S. interest rates have also slipped, with futures pricing indicating the Fed funds rate – currently set between 3.75% and 4% – staying below 5%.

The Fed is widely expected to hike the funds rate by 50 basis points on Wednesday, a step down in pace after four consecutive 75 basis-point hikes.