Not only gold, USD price also 'surged', why?

It takes 25,452 VND to exchange for 1 USD - Photo: Q.D

USD price increased by nearly 700 VND since the beginning of October

The State Bank announced the central exchange rate on October 22 at 24,240 VND, up 12 VND compared to yesterday and up nearly 160 VND compared to the beginning of this month.

With a margin of 5%, commercial banks are allowed to trade USD in the range of 23,028 VND to 25,452 VND.

Commercial banks also adjusted the USD selling price to the ceiling. At Vietcombank, this bank listed the two-way buying and selling prices at 25,062 - 25,452 VND, an increase of 22 VND compared to yesterday.

Since the beginning of October, Vietcombank has increased its selling price by nearly 690 VND and its buying price by 662 VND for each USD.

Not only Vietcombank, many other banks also increased their exchange rates to the limit. For example, Eximbank sells USD at 25,452 VND and buys at 25,150 VND, an increase of 690 VND for selling and 750 VND for buying.

Since the beginning of the year, the exchange rate has increased by 1,030 VND, equivalent to a 4.2% depreciation. The USD has been on the rise again after a "calm" period since August.

With the rapid increase, the USD price at banks is now approaching the free market level. By this afternoon, foreign exchange points were buying and selling USD at 25,460 - 25,560 VND, an increase of 200 VND compared to yesterday.

Why does the exchange rate increase and how does it affect stocks?

Speaking to Tuoi Tre Online, Mr. Tran Thang Long - Director of BIDV Securities Research and Analysis Center (BSC) - said that the domestic exchange rate is under pressure due to the significant strengthening of the USD.

The greenback has risen for three consecutive weeks, surpassing 104 points as a series of positive economic data has investors reducing expectations about the size and speed of interest rate cuts from the Fed.

In addition, according to an update from a US election survey site, candidate Donald Trump is receiving a higher support rate. "While Mr. Trump is someone who has a view of maintaining a higher interest rate policy and attracting USD back to the US," said Mr. Long.

Investors are still waiting for the US presidential election on November 5. "In general, it is very difficult to predict the upcoming domestic exchange rate, because the upward pressure this time is mainly related to international factors," said Mr. Long.

Recently, the State Bank has resumed net withdrawal through treasury bills. This is also the first time that withdrawal of money through treasury bills has been reactivated after more than 5 months of disuse.

Mr. Long said this is one of the solutions for the regulatory agency to control exchange rates and limit speculation. However, the exchange rate movement and the net withdrawal of money through the treasury bill channel could have a psychological impact on the stock market.

According to VPBanks experts, although the Fed has cut, interest rates are still quite high. Therefore, the exchange rate still faces many obstacles and needs to be monitored in the final stage of the year.

Exchange rate pressure will gradually decrease due to factors from the Fed's interest rate cut and the continued positive trade balance, bringing many expectations for USD cash flow at the end of the year, VPBanks experts forecast.

In a recent report, Maybank Securities stated that the short-term increase in exchange rates is having a certain negative impact on investor sentiment.

However, the group of experts expects the VND to stabilize against the USD in the near future and the State Bank will maintain a loose monetary policy to support economic growth.

Source: https://tuoitre.vn/khong-chi-vang-gia-usd-cung-noi-song-vi-dau-20241022213931728.htm