Foreign exchange prices on February 12, 2025: USD drops sharply, Index falls below 108

DNVN - On February 12, 2025, the USD weakened as concerns about tariffs gradually subsided.

Foreign exchange prices on February 10, 2025: Will it continue to increase sharply?

USD exchange rate on the world market

The Dollar Index (DXY), which measures the value of the USD against six major currencies (EUR, JPY, GBP, CAD, SEK, CHF), closed at 107.93 - down 41 points from the session on February 11, 2025.

The greenback weakened on Tuesday after Federal Reserve Chairman Jerome Powell said the U.S. central bank has no plans to cut short-term interest rates in a hurry, while investors awaited more details on possible U.S. trade tariffs under President Donald Trump.

In testimony before the Senate Banking, Housing and Urban Affairs Committee, Powell emphasized that monetary policy reflects a “generally strong” U.S. economy, with unemployment remaining low and inflation still above the Fed’s 2% target. Those comments were largely in line with traders’ expectations.

He also stressed to lawmakers that free trade still has a rationale, noting that the Fed's role is not to take a position on tariff or trade policy, but to respond to the impact of these factors on the economy.

"He's trying to be very, very, very cautious in his comments and not scare anyone," said Helen Given, a foreign exchange trader at Monex USA in Washington.

Market sentiment is slowly adjusting to news related to potential tariffs, with investors worried about their impact on inflation and economic growth.

“We’ve seen a lot of volatility over the last two weeks coming from tariff headlines,” Given said. “What we’re seeing now is that those headlines and announcements are not necessarily indicative of those tariffs actually going to be implemented, at least not when we think they might be implemented. So people are just in a wait-and-see mode.”

Financial markets are now pricing in a 36 basis point cut in the Fed’s interest rate by the end of the year, unchanged from before Powell’s speech. This implies a 25 basis point cut, with a small chance of a second cut.

On Wednesday, Powell is scheduled to continue testifying before the House Financial Services Committee.

January consumer price index data, due on Wednesday, is the most important U.S. economic report this week and is expected to show continued steady inflation.

The USD index fell 0.37% during the session, closing at 107.96 points.

Tariff concerns are likely to remain at the forefront of markets, especially as there are signs of rising trade tensions.

“The threat of further US tariffs remains, including against the European Union. Retaliation could even lead to a tail risk scenario of a global trade war,” warned Athanasios Vamvakidis, global head of FX research at BofA.

“Even if the worst is avoided, we remain concerned that prolonged uncertainty will have negative impacts on the global economy,” he added.

Trump said on Monday he would announce plans to impose reciprocal tariffs on other countries within the next two days, echoing a statement he made on Sunday.

On Sunday, Trump confirmed plans to impose a 25% tariff on all steel and aluminum products imported into the US, in addition to existing metal tariffs.

The European Union has said it will respond with strong and proportionate countermeasures.

Domestic USD exchange rate

In the domestic market, at the opening session on February 12, the State Bank announced the central exchange rate of the Vietnamese Dong against the USD increased by 35 VND, currently reaching 24,522 VND.

The reference exchange rate at the State Bank of Vietnam remains stable, maintained at: 23,346 VND - 25,698 VND (buy - sell).

At Vietcombank, the USD exchange rate is 25,310 - 25,700 VND/USD, up 140 VND in both buying and selling compared to the previous session.

TPB Bank lists the lowest USD cash purchase price: 1 USD = 24,390 VND

TPB Bank lists the lowest USD transfer purchase price: 1 USD = 24,430 VND

MSB Bank lists the highest USD cash purchase price: 1 USD = 25,365 VND

VietinBank lists the highest USD transfer purchase price: 1 USD = 25,549 VND

TPB Bank lists the lowest USD cash selling price: 1 USD = 24,870 VND

PublicBank lists the lowest USD transfer price: 1 USD = 25,430 VND

Eximbank listed the highest USD cash selling price: 1 USD = 25,760 VND

MB Bank lists the highest USD transfer price: 1 USD = 25,748 VND

The EUR exchange rate at the State Bank Exchange has slightly increased, currently trading at: 24,008 VND - 26,535 VND.

The Japanese yen exchange rate at the State Bank of Vietnam also increased slightly, currently at: 153 VND - 170 VND.