The dollar recovered through the end of the week amid shifting expectations for Federal Reserve policy, supported by strong August employment data. Meanwhile, the domestic US dollar exchange rate was stable at 25,605 dong as of the morning.
After rising at the start of the week, the US dollar recovered toward the weekend following an August employment report that exceeded expectations. According to Reuters, payrolls increased by 162,000, strengthening expectations of a rate hike at the Federal Reserve's September meeting.
The State Bank of Vietnam's central rate remained unchanged this morning at 25,605 dong per US dollar. The trading band is ±5%, with an upper limit of 26,885 dong and a lower limit of 24,325 dong.
Financial institutions including Vietcombank, MB, AGRIBANK, TPbank, HDBank and BIDV each displayed ranges for their US dollar buying and selling rates, with no significant change in either the buying or selling rates from the previous day.
The dollar recovered toward the weekend as constant shifts in expectations for Federal Reserve monetary policy continued to drive its movements, according to reports. One source, the Hanoi Moi newspaper, attributed the recovery to the strength of the August employment data and expectations of a US rate hike.