Dollar inches up against dong amid global market shifts

Vietcombank, one of Vietnam's leading banks, sold the U.S. dollar at VND26,120 on Friday morning, a 0.04% increase against the Vietnamese dong. The dollar remained steady at VND25,760 on the black market. This movement aligns with global market trends, where renewed fears of energy supply disruptions in the Middle East have pushed up bond yields and oil prices, consequently strengthening the dollar. According to Reuters, the U.S. dollar index held near its highest levels of the past week, and the yen slipped for a second day at the start of Asian trading. The U.S. dollar index, which measures the greenback's strength against a basket of six currencies, traded at 99.081, holding steady after gaining 0.3% on Thursday to reach its highest level since September 7. This rise followed the release of data showing U.S. producer prices increased by 0.4% in August, meeting market expectations, with energy prices rebounding during the month. Against the yen, the U.S. dollar was as much as 0.1% firmer at 154.615 yen. The euro also strengthened by a similar magnitude to as much as 179.49 yen after the European Central Bank hiked interest rates on Thursday for the second time this year. Under Vietnam's one-party system, exchange rate stability is crucial for economic growth and smooth international trade. Fluctuations in the dollar-dong exchange rate can directly impact corporate profitability and prices, especially for Vietnam's export-import dependent economy. This slight dollar appreciation suggests that global financial market uncertainties can influence domestic financial policies and corporate activities in Vietnam.