Dollar Rises Against Dong on Black Market Amid Global Yen Strength

The U.S. dollar rose against the Vietnamese dong on the black market Wednesday morning, with unofficial exchange points seeing the greenback up 0.19% to around VND25,760. Meanwhile, the currency remained stable at VND26,160 at lender Vietcombank. The State Bank of Vietnam lowered its reference rate by 0.04% to VND25,594. Globally, the Japanese yen steadied near its strongest level since February on Wednesday, keeping the dollar on the defensive. This comes as traders grapple with oil prices pushing towards $100 per barrel amid a widening war in the Middle East, Reuters reported. The dollar index, which measures the U.S. currency against six of its key rivals, was at 98.15, close to its lowest level in almost two weeks. The yen was firmer at 153.65 per U.S. dollar, approaching the seven-month high of 152.89 it hit on Tuesday. The euro was steady at $1.1631, while sterling last bought $1.3546. OCBC strategists noted that the latest Middle East escalation keeps Fed policy implications from higher energy prices in focus, particularly after last week's strong U.S. payrolls report revived expectations of another rate hike. "For now, higher oil and yields may help limit USD downside, but we suspect a more decisive move will require confirmation from the upcoming inflation data," they said in a note. In Vietnam's one-party system, monetary policy is tightly managed by the central bank. However, black market exchange rates can reflect supply and demand dynamics and the impact of international financial conditions, showing a divergence from official rates. Vietnam's economy has experienced significant growth in recent years, but global inflationary pressures and geopolitical risks can still affect the domestic economy.