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Dollar Surges Against Dong in Black Market

The American currency increased slightly compared to the Vietnamese đồng on the unofficial market early Saturday, even amid worldwide declines.

The U.S. dollar rose 0.11% to reach VND26,580 at informal currency exchanges.

Vietcombank maintained its exchange rate at VND26,520.

Vietnam’s central bank maintained its benchmark exchange rate at VND25,298.

According to Reuters, the U.S. dollar fell significantly worldwide on Friday following comments from Federal Reserve Chairman Jerome Powell suggesting a potential interest rate reduction during the central bank’s September gathering, although he did not confirm this action.

The U.S. Dollar Index, which tracks the value of the dollar relative to a group of major currencies such as the Japanese yen and the euro, fell 0.96% for the day to 97.66, compared to levels near 98.7 prior to Powell’s remarks.

Karl Schamotta, head of market strategy at Corpay based in Toronto, stated that Powell’s statement was significantly more accommodative than what financial markets had expected.

“The currency is declining, chances of a September interest rate reduction are increasing, and market players seem prepared for further loosening,” he stated.

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