DNVN - The central exchange rate between the Vietnamese Dong and the USD on February 7, 2025 was adjusted up by 30 VND, reaching 24,425 VND. Meanwhile, in the international market, the greenback also recorded a slight increase compared to some key currencies, although it still fluctuated near the lowest level since the beginning of last week.
World market
The Dollar Index (DXY), which measures the strength of the USD against six major currencies (EUR, JPY, GBP, CAD, SEK, CHF), closed at 107.68 points, up 0.06 points from February 6, 2025.
The Japanese yen hit an eight-week high against the dollar after a member of the Bank of Japan's policy board backed further interest rate hikes. The British pound, on the other hand, fell as the Bank of England cut interest rates.
The pound initially weakened significantly after the Bank of England made its expected rate cut, but rising inflation forecasts and weak economic growth prompted two members of the governing council to call for further rate cuts.
The pound, however, recovered slightly, having hit a one-month high in the previous session, and is now down 0.54% at $1.2438.
Traders are expecting the Bank of England to cut interest rates by a total of 67 basis points before the end of the year.
With tensions over tariffs having eased somewhat, the market is now focused on the US payrolls report due on February 7, which is considered an important factor in predicting US monetary policy.
The DXY index hit a two-year high of 110.17 on January 13, but has fallen 2% since then.
The Japanese yen rose to 151.81 yen per dollar at one point, its highest level since December 12. The upward momentum came from a statement by Bank of Japan (BoJ) board member Naoki Tamura, who said that interest rates may need to be raised to at least 1% in the second half of 2025 due to inflation risks.
At the end of the session, the Japanese yen closed at 151.335/USD, up 0.82% from the previous session.
The market is now betting on the Bank of Japan raising interest rates by 25 basis points in September. “Tamura is known for his hawkish views on monetary policy, and his comments have spurred flows into the yen,” said Shoki Omori, a strategist at Mizuho Securities.
In contrast, LSEG data shows that the market is almost certain that the US Federal Reserve (Fed) will cut interest rates by 25 basis points in July, with a total cut expected to be around 46 basis points by the end of the year.
US Treasury Secretary Scott Bessent said on February 6 that President Donald Trump wants lower interest rates, but will not directly intervene to ask the Fed to do so.
Other movements in the forex market
The EUR recorded a slight decrease of 0.19% to 1.0382 USD.
“In the run-up to the election, our research showed that North American companies with a market capitalization of less than $100 million were paying close attention to the risk of the U.S. dollar moving in the wake of the election. About half of these smaller companies were concerned about the impact of new monetary policies,” said Eric Huttman, CEO of MillTechFX.
“We have seen a significant increase in hedging activity across a range of sectors as corporates seek to protect against the large market moves since Trump’s election and the strong dollar,” said Kyle Chapman, a foreign exchange analyst at Ballinger Group in London.
“Forex markets are currently being affected by strong news even outside the financial sector, attracting the attention of investment funds on exchange rate movements. This comes from the perception that the US dollar can maintain its strength for a long time when Trump’s tax policy takes effect,” he continued.
Domestic USD exchange rate
In the domestic market, at the opening of the trading session on February 7, the State Bank of Vietnam announced the central exchange rate increased by 30 VND, reaching 24,425 VND/USD.
At Vietcombank, the USD price is listed at 25,060 - 25,450 VND/USD, an increase of 110 VND for buying and 200 VND for selling compared to the previous session.
At some other banks:
- TPB Bank listed the lowest USD cash purchase price at 24,390 VND/USD.
- TPB Bank applies the lowest USD transfer purchase price of 24,430 VND/USD.
- VietinBank has the highest USD cash purchase price, reaching 25,190 VND/USD.
- VietinBank also leads in USD transfer buying price, at 25,549 VND/USD.
- TPB Bank has the lowest USD cash selling price, at 24,870 VND/USD.
- HSBC Bank offers the lowest USD transfer price, reaching 25,283 VND/USD.
- Saigonbank listed the highest USD cash selling price, at 25,646 VND/USD.
- MB Bank currently has the highest USD transfer price, up to 25,575 VND/USD.
In the free market, the USD exchange rate on February 7, 2025 recorded a decrease of 26 VND in both buying and selling directions compared to the previous session, trading around 25,571 - 25,671 VND/USD.
Viet Anh (t/h)
Source: https://doanhnghiepvn.vn/kinh-te/gia-ngoai-te-ngay-7-2-2025-dong-usd-nhich-nhe-tro-lai/20250207094927462
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