DNVN - On October 23, 2024, the central exchange rate of the Vietnamese Dong against the USD increased by 12 VND, currently at 24,240 VND. The USD today climbed to a new peak within 2 and a half months as investors expected that the US Federal Reserve (Fed) will adjust the interest rate cut roadmap.
USD exchange rate on international market
The Dollar Index (DXY), which measures the strength of the USD against six other major currencies such as EUR, JPY, GBP, CAD, SEK and CHF, is currently at 104.07 points, down 0.09 points compared to the trading session on October 22, 2024.
The US dollar hit a two-and-a-half month high today, continuing its recent rally, as markets bet the Fed will change its rate-cutting path, as investors closely monitor the tense US presidential election.
The greenback has posted a three-week winning streak and is on track for its 15th gain in 17 trading sessions, as a slew of upbeat economic data has dampened expectations for the pace and scale of Fed rate cuts, sending U.S. Treasury yields higher.
The yield on the benchmark 10-year U.S. Treasury note hit 4.222% on Tuesday, its highest level since July 26.
According to the CME FedWatch Tool, the market is currently pricing in an 89.6% chance of a 25 basis point cut at the November meeting, while there is a 10.4% chance that the Fed will leave rates unchanged. A month ago, the market was pricing in at least a 25 basis point cut, with a 50 basis point cut expected at 50.4%.
“If the U.S. economic data is not strong, or even weaker than other regions, the divergence between the Fed and other central banks will widen,” said Thierry Wizman, global rates and foreign exchange strategist at Macquarie in New York. “At least in terms of tone and communication, this is a key factor in the continued strength of the dollar.”
The dollar index, which measures the greenback against a basket of currencies including the yen and the euro, rose 0.12% to 104.08, after hitting 104.10, its highest since Aug. 2. The index has gained about 3.3% this month and is on track for its biggest gain since April 2022. The pound is currently down 0.04% at $1.2979.
The upcoming US presidential election also caused volatility in the exchange rate, as the market is expecting the victory of Republican presidential candidate, former President Donald Trump, who could introduce inflation-related policies, such as tariffs.
“As the prospect of a Trump victory becomes clearer, markets are starting to price in the possibility of rising inflation in the United States, as his agenda is more closely tied to inflation, especially compared to the policies of Democratic candidate Kamala Harris,” Wizman added.
Domestic USD exchange rate
On October 23, 2024, the USD exchange rate continued to increase to a new high in 2 and a half months due to expectations that the Fed will change its interest rate cut roadmap.
In today's trading session, the State Bank of Vietnam announced the central exchange rate between the Vietnamese Dong and the USD increased by 15 VND, bringing the current exchange rate to 24,240 VND.
Currently, the trading exchange rate of commercial banks is allowed to fluctuate between 23,400 and 25,450 VND/USD. The State Bank of Vietnam has also adjusted the USD buying and selling exchange rate to between 23,400 and 25,450 VND/USD.
At Vietcombank, the buying and selling rates of USD are fluctuating between 25,062 and 25,452 VND. Currently, the buying and selling rates of USD in the commercial banking system fluctuate between 24,000 and 25,500 VND/USD.
The Euro exchange rate at the State Bank of Vietnam recorded a slight decrease, currently at the buying - selling rate of 24,904 VND - 27,525 VND.
The Japanese Yen exchange rate at the State Bank of Vietnam also decreased slightly, with the buying and selling rates currently around 153 VND - 169 VND.
Thanh Mai (t/h)
Source: https://doanhnghiepvn.vn/kinh-te/gia-ngoai-te-ngay-23-10-2024-usd-dat-dinh-2-thang-ruoi-nha-dau-tu-cho-doi-dieu-chinh-tu-fed/20241023075552703
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