Foreign exchange rate on January 18, 2025: USD reverses to increase in price

DNVN - On January 18, 2025, the central exchange rate of Vietnamese Dong to USD increased by 8 VND, reaching 24,341 VND.

USD exchange rate on the world market

Foreign exchange prices on January 16, 2025: USD continues to weaken

The Dollar Index (DXY), which measures the strength of the USD against six major currencies (EUR, JPY, GBP, CAD, SEK, CHF), recorded at 109.36, up 0.41 points compared to the trading session on January 17, 2025.

The US dollar rose against other currencies in recent trading sessions but ended the week on a downward trend after 6 consecutive weeks of gains. The reason is believed to be that investors are following the inauguration of US President-elect Donald Trump and the policy direction of the new administration.

In contrast, the Japanese yen posted its biggest weekly gain in more than a month on expectations that the Bank of Japan (BOJ) will raise interest rates next week, adding pressure on the dollar.

Against the USD, the Japanese yen has gained over 1% this week, reversing last week's decline and hitting a one-month high of 154.98 in recent trading.

“The yen will remain tied to U.S. interest rates,” said Brad Bechtel, global head of FX at Jefferies. “I think the greenback’s weakness this week has helped to take some of the pressure off USD/JPY. The BOJ appears poised to raise rates next week, which should be positive for the yen. But with the interest rate differential still so wide, it’s unlikely that USD/JPY will fall much further.”

Comments from BOJ officials and Japanese data showing persistent price pressures and strong wage growth have bolstered confidence in the likelihood of a rate change, with markets pricing in an 80% chance of a BOJ rate hike next week.

Reuters quoted sources as saying that the Bank of Japan is likely to raise interest rates next week, unless there is important information that strongly affects the market after Mr. Trump's inauguration.

The US dollar has strengthened in recent weeks as US Treasury yields have risen, reflecting expectations that Mr Trump's policies could spur inflation amid a stabilising US economy.

Federal Reserve Governor Christopher Waller said on January 16 that there could be three or four interest rate cuts this year, adding to market expectations of a rate cut by the Fed, putting pressure on the dollar ahead of Trump’s inauguration next week. Markets are now pricing in about 40 basis points of rate cuts in the US by 2025.

“In the wake of weaker-than-expected inflation data last week, investors have increased their forecast for a Fed rate cut from 25 to 40 basis points,” said Uto Shinohara, investment strategist at Mesirow Currency Management.

Investors are now focused on Mr Trump’s new term and his policies towards the market. His inauguration speech on January 20 will be a key point in shaping his future strategy.

The pound fell 0.6% to $1.2166 after data on January 17 showed UK retail sales unexpectedly fell in December, raising the risk of a fourth-quarter recession.

The EUR also fell 0.26% to $1.0276.

Domestic USD exchange rate

In the Vietnamese market, at the beginning of the trading session on January 18, the State Bank announced the central exchange rate of the Vietnamese Dong against the USD increased by 8 VND, reaching 24,341 VND.

The reference exchange rate at the State Bank of Vietnam remains unchanged, currently at 23,400 VND - 25,450 VND (buy - sell).

At Vietcombank, the USD price is recorded at 25,120 - 25,510 VND/USD, down 39 VND in both buying and selling compared to yesterday.

TPB Bank currently has the lowest USD cash purchase rate: 1 USD = 24,390 VND.

The lowest USD transfer purchase rate belongs to TPB: 1 USD = 24,430 VND.

Hong Leong Bank buys USD cash at the highest price: 1 USD = 25,265 VND.

VietinBank buys USD transfers at the highest price: 1 USD = 25,549 VND.

TPB sells USD cash at the lowest price: 1 USD = 24,870 VND.

OCB Bank sells the lowest USD transfer: 1 USD = 25,462 VND.

Banks ABBank, Eximbank, MSB, PGBank, Saigonbank, UOB, VRB are selling USD cash at the highest price: 1 USD = 25,558 VND.

ABBank and MSB sell USD transfers at the highest price: 1 USD = 25,558 VND.

The EUR exchange rate at the State Bank of Vietnam increased slightly, reaching 23,828 VND - 26,336 VND (buy - sell).

The Japanese Yen exchange rate here also increased, recording 149 VND - 165 VND (buy - sell).