The U.S. dollar weakened against the Vietnamese dong on Monday morning, continuing its downward trend while remaining at multi-year lows against both the euro and the Swiss franc.
Vietcombank set the dollar’s exchange rate at VND26,320, marking a slight decrease of 0.11% from the previous weekend. In the informal market, the U.S. currency slid by 0.08% to VND26,500.
The State Bank of Vietnam’s reference rate also dropped by 0.01%, now sitting at VND25,113.
On a global scale, the dollar is teetering near its lowest value since 2021 against the euro and its weakest since 2015 compared to the Swiss franc, with traders nervously awaiting any trade developments as the countdown to President Donald Trump’s tariff deadline continues, according to Reuters.
In Asian markets, the dollar depreciated 0.1% to 0.7944 Swiss francs, inching closer to the July 1 low of 0.7869 franc—its weakest level since January 2015. Interestingly, it did manage a modest uptick to 144.73 yen.
The euro experienced a small dip of 0.1% to $1.1773, closely trailing the July 1 peak of $1.1829, which was the highest it has been since September 2021. Meanwhile, sterling fell 0.2% to $1.3628, yet it remained near its July 1 pinnacle at $1.3787, marking its strongest showing since October 2021.
Despite these fluctuations, the dollar index—a gauge that compares the U.S. currency against six major counterparts—rose 0.1% to 97.058, staying above Tuesday’s near three-and-a-half-year low of 96.373.
“Market volatility seems unavoidable once the pause ends and new tariff levels are unveiled,” warned James Kniveton, a senior corporate FX dealer at Convera, in a note to clients. However, he noted that “the impact may be more muted this time,” explaining that current proposals are not as unexpected as previous announcements, which often exceeded market anticipations.
How did the U.S. dollar perform against the Vietnamese dong on Monday?
The U.S. dollar weakened against the Vietnamese dong, with Vietcombank setting the exchange rate at VND26,320, down 0.11% from the weekend.
What recent trends have been observed in the global currency markets?
Globally, the dollar is at multi-year lows against the euro and the Swiss franc, raising concerns among traders as they await developments related to trade tariffs.
What insights did a senior FX dealer share regarding potential market impacts?
James Kniveton, a senior corporate FX dealer, indicated that while market volatility is likely when new tariffs are announced, the impact could be less significant than in previous instances due to the anticipated nature of current proposals.
