The US dollar is on the rise again.
While the market was shaking, the USD welcomed the new week quite “calmly”. At the beginning of the session, the USD/VND exchange rate only increased very slightly. However, by noon, the USD suddenly “heated up” noticeably.
At the Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank), at opening time, the USD/VND exchange rate only increased by 10 VND/USD. However, before the “lunch break”, the USD suddenly increased by 30 VND/USD to 23,610 VND/USD – 23,950 VND/USD. Thus, compared to the end of last week, the exchange rate has increased by 40 VND/USD.
Joint Stock Commercial Bank for Investment and Development of Vietnam (BIDV) listed the exchange rate at: 23,640 VND/USD - 23,940 VND/USD, an increase of 35 VND/USD in both buying and selling compared to the end of last week.
After a cautious opening, by noon on August 14, the USD increased sharply and headed straight to the 24,000 VND/USD mark. Illustrative photo
The USD/VND exchange rate at Vietnam Joint Stock Commercial Bank for Industry and Trade (VietinBank) was adjusted up 11 VND/USD compared to early this morning to: 23,619 VND/USD - 23,959 VND/USD.
At commercial banks, the USD is also heating up.
Vietnam Export Import Commercial Joint Stock Bank (Eximbank) listed the exchange rate at: 23,640 VND/USD - 23,940 VND/USD, up 30 VND/USD. The exchange rate at Vietnam Technological and Commercial Joint Stock Bank (Techcombank) adjusted the exchange rate up 34 VND/USD to 23,627 VND/USD - 23,963 VND/USD.
In the free market, the USD also improved slightly. At Hang Bac and Ha Trung - the "foreign currency streets" of Hanoi, the USD/VND exchange rate was commonly traded at: 23,750 VND/USD - 23,830 VND/USD, keeping the buying price unchanged but increasing 10 VND/USD for the selling price compared to the end of last week.
The USD/VND exchange rate has been continuously increasing sharply in the context of the banking system adjusting the mobilization interest rate downward on a daily basis. However, the impact of the interest rate reduction is considered not too large as the State Bank has maintained high foreign exchange reserves for a long time.
Suppressed by Japanese Yen, USD Still Goes Up
In the Asian market, the Japanese Yen is clearly strengthening after a long period of gloom. However, considering the overall impact of the basket of 6 strong currencies, the USD is still clearly "heating up".
Specifically, in the morning session of August 14 in the Asian market, the Japanese yen surpassed the 145 mark against the dollar for the first time since November 2022.
Earlier, last Friday, the Japanese currency briefly touched the same important psychological level.
The yen has been weakening since the Bank of Japan (BOJ) tweaked its stance on yield curve control policy in late July, sending 10-year Japanese government bonds to a nine-year high.
In a foreign exchange note published on Monday, HSBC said it expects Japan’s Ministry of Finance to “start pushing back into the 145-148 range.” The Japanese government and the BOJ have intervened to buy the yen at 145 per dollar by September 2022.
However, if the BOJ and the Japanese government do not intervene, HSBC said that yen short positions “could be built up further.” The note highlighted that these positions were cut by more than 30% in July in the run-up to the BOJ’s July 28 monetary policy meeting.
The US dollar has also been on an upward trend since late July, with the dollar index rising from a low of 99.77 on July 13 to its current level of 102.99.
HSBC said there is a “new factor” supporting the US dollar – namely high US long-term yields due to concerns about the US budget deficit and supply of US Treasury bonds.
Japan will report gross domestic product for the quarter ended June on Tuesday. Inflation figures for July will be released on Friday.
HSBC pointed out that “a data miss could also encourage bears”.
GDP is expected to have grown 0.8% on a quarterly basis and the core consumer price index - which strips out fresh food prices - is forecast to come in at 3.1%, according to a Reuters poll.
Source
Comment (0)