Vietnamese dong drops to record low as Asian currencies weaken

[MANILA] The Vietnamese dong fell, dropping below a record low it touched in April, as Asian currencies declined following a report that the US is preparing for a possible strike on Iran.

The dong fell 0.1 per cent to 26,130 per US dollar on Thursday (Jun 19), declining for a fifth time in the past six sessions.

Asian currencies and stocks weakened on Thursday as the risk of the US directly joining the conflict between Iran and Israel weighed on sentiment.

For export-reliant Vietnam, the dong is also under pressure as the US plans to impose a 46 per cent tariff on the nation’s goods.

“The dong weakness has more to do with the US dollar, which has rebounded,” said Chunyu Zhang, senior associate analyst for Asia FX and Rates at Bloomberg Intelligence. “The dong is likely to lag regionally until the trade tension eases.” BLOOMBERG