USD drops shockingly at the beginning of the week
After surpassing the 24,000 VND/USD mark in the selling direction, the USD/VND exchange rate has fluctuated frequently with alternating increases and decreases. In the first trading session of the new week, the USD continued this trend. At some banks, the USD/VND exchange rate has dropped sharply.
The USD/VND exchange rate at Vietnam Joint Stock Commercial Bank for Industry and Trade (VietinBank) has the deepest decrease rate. The exchange rate is listed at 23,880 VND/USD - 24,220 VND/USD, down 100 VND/USD, equivalent to 0.42% in both buying and selling compared to the end of last week.
Vietnam Technological and Commercial Joint Stock Bank (Techcombank) also deeply reduced the USD. The exchange rate at Techcombank is bought and sold at 23,890 VND/USD - 24,227 VND/USD, down 50 VND/USD for buying, down 51 VND/USD for selling.
In the first trading session of the week, the USD/VND exchange rate dropped dramatically at some banks and remained unchanged on the free market. Illustrative photo
At the Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank), the USD is traded at: 23,885 VND/USD - 24,225 VND/USD, down 35 VND/USD.
The USD/VND exchange rate at Orient Commercial Joint Stock Bank (OCB) is traded at 23,918 VND/USD – 24,388 VND/USD, down 10 VND/USD for buying, down 5 VND/USD for selling. The selling price of USD at OCB is often the highest in the market.
Meanwhile, in the free market, the USD has not fluctuated much compared to last weekend. At Hang Bac and Ha Trung – the “foreign currency streets” of Hanoi, the USD/VND exchange rate is currently being bought and sold at: 24,100 VND/USD – 24,170 VND/USD.
US dollar weakens in Asian markets
It can be seen that the USD/VND exchange rate is moving in the same direction as the USD in the Asian market. The USD is weakening compared to some key currencies.
The yen rose on Monday as comments from Bank of Japan (BOJ) Governor Kazuo Ueda raised hopes that Japan could soon herald a new era away from negative interest rates, while the dollar weakened ahead of U.S. inflation data this week.
The Japanese currency rose nearly 0.8% at one point to hit a session high of 146.66 per dollar in early Asian trade, boosted by weekend comments from Ueda that the central bank could end its negative interest rate policy when achieving its 2% inflation target is in sight.
Ueda told the Yomiuri newspaper in an interview that the BOJ may have enough data by the end of the year to determine whether it can end negative interest rates.
The yen has been under huge pressure against the dollar due to the widening interest rate differential with the United States, since the Federal Reserve embarked on an aggressive rate-hiking cycle last year while the BOJ has remained a dovish outlier.
“Ueda is laying the groundwork for an exit from negative rates and he is making a lot of announcements,” said Matt Simpson, senior market analyst at City Index.
Elsewhere, the greenback edged lower, off three-month highs against the euro and sterling hit last week.
The euro rose 0.13% to $1.0714, after ending an eight-week losing streak on Friday. The pound was 0.16% higher at $1.2486.
The dollar index, which peaked last week with eight straight weeks of gains, its longest winning streak since 2014, eased slightly to 104.84.
The offshore yuan rose about 0.1% to 7.3587 per dollar, though it was still not far from Friday's 10-month low of 7.3678 per dollar as sentiment about China's faltering economic recovery remained fragile.
The Australian dollar, often used as a liquidity proxy for the yuan, rose 0.29% to $0.6397, while the New Zealand dollar edged higher by 0.28% to $0.5900.
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