Dollar Climbs Against Dong Amid Global Currency Weakness

The U.S. dollar strengthened against the Vietnamese dong on the black market Monday morning, reaching a 17-month high against the euro. The greenback climbed 0.27% to approximately VND26,030 at unofficial exchange points, while it held firm at VND26,170 at Vietcombank. The State Bank of Vietnam adjusted its reference rate upward by 0.02% to VND25,643.

Globally, the euro weakened significantly, hitting a 17-month low amid fiscal concerns in France and a bond market rout that raised contagion risks in the region. The euro dropped to as low as $1.1161, its lowest level since May 2022. The British pound and Japanese yen also declined, with sterling slipping 0.24% to $1.32064 and the yen trading at 157.92 per dollar.

The dollar index, measuring the U.S. currency against six major units, rose 0.47% to 102.37. Analysts attributed the dollar's strength to rising Treasury yields, which enhanced the appeal of U.S. assets, and safe-haven flows into the greenback due to the global debt selloff. Matthew Ryan, head of market strategy at Ebury, noted that the dollar was the primary beneficiary in this environment.