DNVN - On October 22, 2024, the USD continued to record strong growth thanks to support from US bond yields and positive economic data.
USD exchange rate on the world market
The Dollar Index (DXY), which measures the strength of the USD against six major currencies (EUR, JPY, GBP, CAD, SEK, CHF), reached 103.97 points, down 0.51 points compared to the trading session on October 21, 2024.
The dollar's rise today was mainly due to rising US bond yields, along with a series of positive economic data suggesting the Federal Reserve may cautiously cut interest rates while investors are preparing for the presidential election on November 5.
The greenback has risen for three straight weeks and 14 of the last 16 sessions, as upbeat economic data has reduced investors' expectations of a rate cut from the Fed.
According to the CME FedWatch Tool, the market is pricing in an 87% chance of a 25 basis point cut at the Fed's November meeting, while 13% expect the central bank to leave rates unchanged. The market had fully priced in at least a 25 basis point cut a month ago, with a 50.4% chance of a 50 basis point cut.
“It’s not the Fed, it’s the market adjusting and coming back into alignment with the Fed,” said Marc Chandler, chief market strategist at Bannockburn Global Forex in New York. “The economic data has been very good and we’ll see that next week with the GDP numbers.”
The yield on the benchmark 10-year U.S. Treasury note rose 10.5 basis points to 4.18% after hitting a three-month high of 4.186%. Last week, the Atlanta Federal Reserve raised its estimate for third-quarter GDP growth to 3.4%.
Dallas Federal Reserve Bank President Lorie Logan said the central bank will continue to cut interest rates gradually and she sees no reason why the Fed cannot continue to shrink its balance sheet.
Additionally, Minneapolis Federal Reserve Bank President Neel Kashkari has also stressed that he expects “modest” rate cuts in the next few quarters, although worsening labor market conditions could prompt him to call for faster cuts.
The dollar index, which measures the greenback against a basket of currencies, rose 0.53% to 104.01, on track for its biggest daily percentage gain since Oct. 4. Meanwhile, the euro fell 0.5% to $1.0811 and the pound fell 0.54% to $1.2977.
Domestic USD exchange rate
On October 22, 2024, the domestic USD exchange rate continued to rise thanks to the increase in US bond yields and positive economic data from the US, suggesting that the Federal Reserve may cautiously cut interest rates as investors prepare for the presidential election on November 5.
Opening today's trading session, the State Bank announced the central exchange rate of the Vietnamese Dong to the USD increased by 15 VND, reaching 24,228 VND.
Currently, the permitted exchange rate of commercial banks fluctuates from 23,400 - 25,450 VND/USD. The USD exchange rate has also been adjusted by the State Bank of Vietnam to the buying and selling range from 23,400 to 25,450 VND/USD.
At Vietcombank, the USD buying and selling rates are currently at 25,040 - 25,430 VND. The USD buying and selling prices are currently in the range of 24,000 - 25,500 VND/USD.
The EUR exchange rate at the State Bank's buying and selling exchange center has also increased slightly, currently at 25,011 VND - 27,644 VND.
The Japanese Yen exchange rate at the State Bank's exchange office also recorded a slight increase, currently at 154 VND - 170 VND.
Lan Le (t/h)
Source: https://doanhnghiepvn.vn/kinh-te/gia-ngoai-te-ngay-22-10-2024-usd-duy-tri-da-tang-gia-manh/20241022085039392
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