American bank notes. Photo from Pixabay
The US dollar rose slightly against the Vietnamese dong at unofficial trading points on Friday morning, while remaining stable at banks.
Vietcombank sold the dollar at 24,870 VND, the same price as the day before.
The greenback rose 0.12% to 25,380 VND on the black market.
The State Bank of Vietnam (SBV) lowered its benchmark rate by 0.09% to VND23,996.
The dollar has risen 1.84% against the dong since the start of the year.
Globally, the dollar headed for its biggest weekly decline of the year on Friday as Federal Reserve Chairman Jerome Powell showed more confidence about cutting interest rates in the coming months, while the yen appreciated following growing speculation about a rate hike in Japan. Reuters reported.
Overnight, the European Central Bank left its key rate stable at 4% and set the stage for a cut in June. The euro rose, however, because the federal funds rate is between 5.25 and 5.5 percent and investors see the United States as having more room for reduction.
The common currency hit a near two-month high of $1.0954 in the Asian session, putting it in the middle of a range it has held for a year. It is up 1% against the dollar for the week.
The yen is up 1.6% for the week, its biggest percentage gain since December as policymakers noted signs of a positive wage-price cycle supporting inflation – paving the way for the first increase in Japan’s interest rates in 17 years.
The yen was above its 50-day moving average and at its highest level in a month at 147.54 in early Asian trading on Friday.
