DNVN - The foreign exchange market on December 23, 2024 continued to witness a strong increase in the USD internationally, after the US Federal Reserve (Fed) signaled that it would lower interest rates twice next year.
International USD exchange rate
The Dollar Index (DXY), which tracks the strength of the USD against six major currencies (EUR, JPY, GBP, CAD, SEK, CHF), is currently at 107.62, unchanged from the previous trading day on December 22, 2024.
The greenback fell 0.59% against major currencies over the past week, marking a correction after hitting a two-year high in November.
Data from the U.S. Commerce Department showed inflation is trending down. The personal consumption expenditures (PCE) price index, the Fed's preferred inflation gauge, rose just 0.1% in November, down from a 0.2% increase the previous month. Over the past year, the index has risen 2.4%, down from 2.3% the previous month.
After cutting interest rates by another quarter of a percentage point last week, the Fed is expected to cut rates by another half a percentage point in 2025, reflecting caution amid cooling inflation and a solid U.S. labor market.
Meanwhile, the euro also rose slightly after hitting a monthly low of $1.03435. It ended the session up 0.76% at $1.044175, as Europe continues to face pressure from the Trump administration’s trade policies.
“Inflation remains a major concern for the Fed, especially with U.S. consumer prices rising at their fastest pace in seven months. The new administration’s trade policies could add further pressure, forcing the Fed to remain cautious in adjusting interest rates,” said Peter Nurse, an expert at Investing.com.
The Fed has revised down its forecast for the number of interest rate cuts in 2025 from four to two, showing caution in the face of new economic signals.
Despite the USD’s downward trend in the global market, the currency remains stable domestically. Factors such as cooling inflation and Fed policy are shaping the USD’s trend, while investors need to keep an eye on the US economic and fiscal policy developments.
Domestic USD exchange rate
In the trading session on December 23, the State Bank announced the central exchange rate VND/USD at 24,324 VND.
The reference exchange rate at the State Bank of Vietnam remains unchanged, buying and selling are 23,400 VND and 25,450 VND respectively.
At Vietcombank, the USD exchange rate remained stable at VND25,210 (buy) and VND25,540 (sell).
Similarly, BIDV listed the price unchanged from the previous session, keeping it at VND25,240 for buying and VND25,540 for selling. Techcombank adjusted the buying price down by VND9, reaching VND25,195, while the selling price remained unchanged at VND25,540/USD.
At Eximbank, the USD exchange rate remained at 23,807 VND - 25,540 VND/USD. ACB alone traded at 24,240 VND - 25,540 VND/USD at the end of the week, unchanged from before.
In the free market, at the end of the day, the USD price remained the same at buying, while increasing by 10 VND at selling, fluctuating around 25,780 VND - 25,880 VND/USD.
Exchange rates of other currencies
The EUR exchange rate at the State Bank of Vietnam slightly decreased, currently at 23,947 VND (buy) and 26,467 VND (sell).
The Japanese yen exchange rate also decreased slightly, listed at the State Bank Exchange at 147 VND - 162 VND.
Viet Anh (t/h)
Source: https://doanhnghiepvn.vn/kinh-te/gia-ngoai-te-ngay-23-12-2024-usd-van-tang-manh-nho-dong-thai-cua-fed/20241223090449336
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