Dollar Strong-Arms Dong

The dong has had an up and down day against the safe haven currency dollar. The dollar began today's sessions by beating back the dong, hammering it down to daily lows early in the morning.

Later in the day, the dong switched up and started rising steadily. By noon, the Vietnamese currency had regained much of its early losses. Overall, the dollar still came out ahead against the embattled dong.

Looking ahead, the dollar and dong could make for another interesting pairing tomorrow. Wednesday brings a series of important United States data, including the consumer price index and some housing numbers. Look for positive news to strengthen the dollar and negative news to possibly make the dong a day-long riser.

Overall, the dong still remains a risky play, even by forex standards. Vietnam has been struggling with inflation for decades, and is always one bad day away from devaluing its currency again. For now, the Vietnamese government is trying to eliminate hoarding of dollars, hoping that consumers will instead use their dongs across the country.