Dollar edges away from recent lows with French vote in focus

The dollar caught its breath in Asian trading on Thursday, holding above lows hit earlier this week as investors anxiously awaited this weekend's first round of presidential voting in France.

The dollar index, which tracks the U.S. currency against a basket of six major rivals, edged up 0.1 percent to 99.781, moving away from a three-week low of 99.465 plumbed on Tuesday.

The euro was flat on the day at $1.07140, and was expected to tread water ahead of this weekend's vote.

Centrist Emmanuel Macron held on to his lead as favourite to emerge as the eventual victor, a closely watched poll showed, although it indicated that the outcome of the first round of voting on Sunday was too close to call.

Millions of French voters remain undecided, making this the least predictable vote in France in decades, and raising fears of a potential surprise result that spread turmoil in markets.

Against its perceived safe-haven Japanese counterpart, the dollar was slightly higher on the day at 108.84 yen, pulling away from five-month lows touched on Monday.

"There was a reversal of the recent flight-to-safety trend on Wednesday that we'd been seeing," said Bill Northey, chief investment officer at the private client group of U.S. Bank in Helena, Montana.

"You can see that reflected in the U.S. yield curve, as rates moved a bit higher after release of the Beige Book," he said, referring to the U.S. Federal Reserve's periodic report on the economy.

The Beige Book showed the economy expanded at a modest-to-moderate pace between mid-February and the end of March, but inflation pressures remained in check despite more difficulties in attracting and retaining workers.

The Fed raised its benchmark interest rate in March for the second time in three months. But in recent weeks, weaker-than-forecast data on employment, consumer spending and inflation, as well as geopolitical tension in Syria and North Korea, have prompted investors to trim their expectations for two more hikes this year, according to interest rate futures.

Investors also remain concerned that the administration of U.S. President Donald Trump will be able to pass fiscal or tax reforms any time soon.

Sterling was steady on the day at $1.2845 after notching a more than six-month high of $1.2908 on Tuesday after British Prime Minister Theresa May called for an early general election ahead of Brexit negotiations.

Reuters

Other News

SBV raises short-term capital lending cap to 40%

SBV raises short-term capital lending cap to 40%

The new circular will help credit institutions have more room to provide capital to businesses and investment projects to support high economic growth in the next few years, while increasing flexibility in the SBV’s monetary policy management.

Business confidence in Vietnam rebounds strongly: UOB

Business confidence in Vietnam rebounds strongly: UOB

The study found that 85% of Vietnamese enterprises reported positive business sentiment, a sharp increase from 48% in 2025, when business confidence was weighed down by uncertainties surrounding US tariff policies and related trade developments.

Bac Ninh seeks high-quality foreign investment for sustainable growth

Bac Ninh seeks high-quality foreign investment for sustainable growth

According to Vice Chairman of the provincial People’s Committee Pham Van Thinh, the province aims to maintain stable and sustainable growth, improve the competitiveness of both the economy and local businesses, and make better use of free trade agreements (FTAs) to expand and diversify export markets.

Green building trend flourishes in Ho Chi Minh City's real estate landscape

Green building trend flourishes in Ho Chi Minh City's real estate landscape

The International Finance Corporation (IFC) highlighted the city's dominance in green-certified building floor space in Vietnam, reflecting the rapid expansion of the green building market with 780 completed green buildings encompassing over 18.69 million sq.m by 2025, predominantly certified by EDGE and LEED.

UK supports Vietnam in wind power and green finance development

UK supports Vietnam in wind power and green finance development

The United Kingdom officially announced two new climate cooperation initiatives to support Vietnam in its energy transition and green growth journey. These programs focus on offshore wind power development and the creation of a sustainable green financial ecosystem.

Ample room remains for Vietnam–India logistics cooperation

Ample room remains for Vietnam–India logistics cooperation

The GTTCI expert noted that alongside logistics and integrated warehousing, e-commerce is expected to be a particularly high-growth sector in the coming years. He described it as a multi-billion-dollar market with significant untapped opportunities for cooperation between Vietnam and India.

Exports gain momentum from high-tech growth drivers

Exports gain momentum from high-tech growth drivers

According to the Ministry of Industry and Trade, Vietnam’s exports reached 215.66 billion USD in the first five months of 2026, up 19.5% year-on-year. Twenty-six export items generated more than 1 billion USD in revenue each, including seven with turnover exceeding 10 billion USD.

Vietnam–China crossings see spike in ASEAN fresh produce

Vietnam–China crossings see spike in ASEAN fresh produce

Since the start of the summer harvest season, China's two major border gates with Vietnam, Youyi Guan in Pingxiang and Beilun 2 Bridge in Dongxing, have entered their peak period for handling imports of fresh agricultural and seafood products from member states of the Association of Southeast Asian Nations (ASEAN).

Cargo handling operations at Berths 3 and 4 of the Hai Phong International Gateway Port. (Photo: VNA)

AI reshapes logistics, raising bar for workforce skills

According to the Vietnam Logistics Business Association (VLA), the logistics sector will require around 2.2 million workers by 2030, including 1.6 million employees for logistics service providers and nearly 600,000 personnel supporting logistics operations in manufacturing and trading enterprises.

Robust dispute resolution framework key to Vietnam's IFC ambitions

Robust dispute resolution framework key to Vietnam's IFC ambitions

The development strategy for VIFC-HCMC envisions a comprehensive financial ecosystem encompassing green finance, carbon credits, financial technology (fintech), blockchain technology, digital assets, digital banking and other innovative business models. These highly internationalised sectors involve complex cross-border transactions and sophisticated legal structures.