On Friday, the United States dollar showed an increase against the Vietnamese dong, even though it was headed for a weekly depreciation against other major currencies. Vietcombank reported a slight increase of 0.01% in its selling rate of the US dollar, which was pegged at VND26,360. At the same time, the currency noted a 0.08% rise on the black market, reaching approximately VND26,876.
The Vietnamese central bank, State Bank of Vietnam, made an upward adjustment to its reference rate, increasing it by 0.01% to VND25,105.
Internationally, the US dollar was looking at potentially its most significant weekly decline since January. This trend emerged as other currencies capitalized on the hopeful sentiment that a ceasefire in the Gulf would persist and oil shipping would be resumed.
The US dollar index, which measures the greenback’s strength against a basket of other currencies, has depreciated by 1.3% over the current week. The euro, in contrast, has experienced a rally, piercing its 200-day moving average this week to reach a trading level of $1.1690.
Sterling, the British currency, has also witnessed a significant jump, with an increase of 1.8% this week, pushing it above its 200-day moving average to a trading rate of $1.3424.
Even the risk-sensitive currencies of Australia and New Zealand have charted weekly rises of close to 3% against the US dollar. The Australian dollar is trading just above 70 cents, while the New Zealand dollar currently stands at $0.5847.
Furthermore, the Japanese yen, which has been under substantial pressure due to Japan’s low interest rates, government spending plans, and reliance on imported oil, is marginally above the recent lows at 159.2 to the US dollar.
Thursday saw the arrival of Iranian officials in Islamabad, with a US delegation led by Vice President JD Vance following suit on Friday. The aim of these meetings is to fuel investor optimism regarding the establishment of lasting peace.
Jason Wong, a senior strategist at BNZ based in Wellington, stated that positive discussions could lead to further depreciation of the US dollar. However, if discussions do not progress well and the current scarcity of ships persists, the situation could reverse rapidly.
What was the selling rate of the US dollar against the Vietnamese dong on Friday?
The selling rate of the US dollar against the Vietnamese dong on Friday was VND26,360.
What is the expected trend of the US dollar against major currencies for the week?
The US dollar is expected to witness a weekly depreciation against major currencies.
What has been the impact of geopolitical developments on the US dollar’s performance?
Positive geopolitical developments, such as peace talks, can lead to a depreciation of the US dollar. However, negative outcomes could potentially reverse this trend.
