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I usually use dry white wine or dry sherry. Depending on the dish, you can also use Marsala or even port.
Really depends upon what recipe you need it for. More info?
Vermouth is good for keeping.around, and not much else, to my mind. If your intended result is savory, I would go with a nice, not oaky, medium-sweet white wine. If you are preparing a sweeter dish, I would think a nice Port could work, but use less. To me, vermouth is odd outside of a martini.