Dollar Slides on the Black Market

In an unexpected turn of events, the dollar has slipped by 0.08% against the dong on unofficial exchange points, settling at VND25,820. This shift comes as Vietcombank maintains its selling rate for the greenback at VND25,690.

State Bank Adjusts Reference Rate

The State Bank of Vietnam has also made adjustments, reducing its reference rate by 0.03% to VND24,730, signaling potential shifts in the country's monetary policy.

Global Currency Movements

Globally, the dollar started the week on a weak footing, continuing its decline from last week. This was largely due to concerns over a weakening U.S. labor market and escalating global trade tensions, which have driven investors towards safer currencies like the yen and the Swiss franc.

Investor anxiety is further fueled by U.S. President Donald Trump's tariff impositions on major trading partners, despite some delays, as fears of an economic slowdown grow. The dollar index, reflecting the currency's value against six others, lingered near a four-month low at 103.59.

Safe Havens Gain Strength

In response to the market's risk aversion, the Japanese yen and Swiss franc have surged to multi-month highs. The yen strengthened by 0.5% to 147.27 per dollar, nearing its five-month peak, while the Swiss franc reached a three-month high at $0.87665.

The euro and sterling also saw gains, with the euro increasing by 0.3% to $1.086725, bolstered by Germany's fiscal reforms, and sterling rising by 0.16% to $1.2941.

Dollar's Weekly Performance

Last week, the dollar experienced a significant decline, falling more than 3% against major currencies. This marks its weakest performance since November 2022, as investors remain wary of the impact of tariffs and a potential economic slowdown.