Foreign exchange prices on October 4, 2024: USD continues to "break out" strongly

DNVN - On October 4, 2024, the central exchange rate of the Vietnamese Dong against the USD increased by 21 VND, currently listed at 24,115 VND, recording remarkable growth of the greenback.

USD exchange rate on the world market

The Dollar Index (DXY), which measures the strength of the USD against six other major currencies (EUR, JPY, GBP, CAD, SEK, CHF), rose to 101.96 points, up 1.2 points from the trading session on October 3, 2024.

The strong growth of the USD in the recent trading session pushed its value above the 102 mark, thanks to positive data on the US economy ahead of the employment report released today, October 4. In addition, increased demand for the greenback due to concerns about tensions in the Middle East also contributed to the USD's breakout.

At the same time, the USD also benefited from more dovish expectations on monetary policy from the US Central Bank (Fed).

Data released on October 3 showed that US service activity rose sharply to a six-month high in September, driven by a surge in new orders. However, the service sector employment index fell, reflecting a slowdown in the labor market.

Data also showed the number of Americans filing new claims for unemployment benefits rose slightly last week.

Positive developments in the US economy, along with comments from Fed Chairman Jerome Powell on October 3, have reduced expectations that the Fed will cut interest rates by another 50 basis points at its meeting on November 6 and 7.

The September jobs report, due out today, is the next major piece of U.S. economic data and could have a big impact on the Fed's policy decision. Economists polled by Reuters expect the U.S. to add 140,000 jobs, while the unemployment rate is expected to hold steady at 4.2 percent.

Traders now price in a 35% probability of a 50 basis point rate cut next month, down from 49% last week, according to CME Group's FedWatch Tool. The dollar continues to benefit from its safe-haven status, especially after Iran's attacks on Israel.

Domestic USD exchange rate

In the domestic market, at the beginning of the trading session on October 4, 2024, the State Bank announced the central exchange rate of the Vietnamese Dong against the USD increased by 21 VND, to 24,115 VND.

Currently, the legal exchange rate of commercial banks is allowed to fluctuate between 23,400 - 25,270 VND/USD. The USD exchange rate at the State Bank of Vietnam is also set to the buying - selling rate of 23,400 - 25,270 VND/USD.

Specifically, the reference exchange rate at the State Bank of Vietnam is currently listed at 23,400 VND/USD (buy) and 25,270 VND/USD (sell).

In this morning's trading session, the USD exchange rate at commercial banks increased sharply. At Vietcombank, the USD buying and selling rates reached 24,550 - 24,920 VND/USD, an increase of 100 VND in both directions compared to the previous day. Currently, the USD buying and selling prices at commercial banks fluctuate from 23,400 - 25,270 VND/USD.

In the free market, the USD exchange rate also recorded an increase in both buying and selling compared to the previous session. In Hanoi, at 5:30 a.m., the USD was traded at 25,086 VND (buy) and 25,206 VND (sell), up 132 VND in buying and 152 VND in selling compared to October 3.

Exchange rates of other currencies

The EUR exchange rate at the State Bank of Vietnam is currently decreasing slightly, with the buying and selling rates at 25,295 VND - 27,958 VND.

The Japanese Yen (JPY) exchange rate also recorded a slight decrease at the State Bank of Vietnam Exchange, currently listed at 156 VND (buy) and 172 VND (sell).

Viet Anh (t/h)

Source: https://doanhnghiepvn.vn/kinh-te/gia-ngoai-te-ngay-4-10-2024-usd-tiep-tuc-but-pha-manh/20241004094202385