USD/VND exchange rate suddenly increased sharply
For a long time, despite the strong fluctuations of the gold and stock markets, the foreign exchange market has been moving in a steady downward direction. However, in the first two sessions of this week, the USD/VND exchange rate suddenly increased sharply.
Joint Stock Commercial Bank for Foreign Trade of Vietnam is listing the USD/VND exchange rate at: 24,190 VND/USD - 24,530 VND/USD, up 50 VND/USD in both buying and selling directions, equivalent to 0.2% compared to the end of yesterday and up 120 VND/USD, equivalent to 0.5% compared to the end of last week.
Joint Stock Commercial Bank for Investment and Development of Vietnam (BIDV) is trading USD at: 24,215 VND/USD - 25,515 VND/USD, up 105 VND/USD in both buying and selling directions, equivalent to 0.4%.
After a long series of days of "giving" the spotlight to the gold market, in the first two sessions of the new week, the USD/VND exchange rate suddenly skyrocketed. Illustrative photo
At Vietnam Joint Stock Commercial Bank for Industry and Trade (VietinBank), the USD/VND exchange rate was exchanged at: 24,199 VND/USD - 24,539 VND/USD, an increase of 149 VND/USD for buying, equivalent to 0.6% and an increase of 69 VND/USD, equivalent to 0.3% for selling compared to the end of last week.
The USD/VND exchange rate at Vietnam Technological and Commercial Joint Stock Bank (Techcombank) is traded at: 24,215 VND/USD - 24,515 VND/USD, up 95 VND/USD, equivalent to 0.4% for buying, up 85 VND/USD for selling, equivalent to 0.3%.
In the free market, the USD edged up slightly. At Hang Bac and Ha Trung – the “foreign currency streets” of Hanoi, the USD/VND exchange rate was commonly bought and sold at 24,620 VND/USD - 24,680 VND/USD, a slight increase compared to the end of last week. At different stores, the buying and selling prices may differ by about 10 VND/USD.
Normally, at the end of the year, the USD tends to “heat up” when the demand for imported goods and services for Tet increases. Therefore, in the last days of 2023, the greenback is forecast to continue to rise.
Currently, the USD/VND exchange rate in the free market is still higher than in the banking system. However, in recent days, this gap has been on a downward trend.
USD "weakens" compared to Japanese Yen
The USD/VND exchange rate is increasing strongly, but in the world market, the greenback tends to weaken, especially compared to the Japanese yen.
The yen rose sharply on Tuesday ahead of a policy decision from the Bank of Japan (BOJ). Investors expect the BOJ to maintain its ultra-loose monetary policy at the end of its two-day meeting.
Investors will, however, parse the results for hints about how soon the BOJ may end its policy of exceptionalism toward major economies, especially as comments by Governor Kazuo Ueda this month fueled speculation of an imminent policy change.
Against the US dollar, the yen rose more than 0.3% to 142.31 and stood not far from a four-month high of 140.95 hit last week.
The Japanese currency has gained more than 6% since hitting a yearly low of 151.92 in November, partly due to a weaker dollar and expectations that Japan's ultra-low interest rate environment may be coming to an end.
The euro fell 0.26% to 155.67 yen while the yen's overnight volatility was last at 29.655%, after rising to its highest since July on Monday.
“While the BOJ’s steadfast policy stance is likely to be adopted this week, the meeting could still be decisive,” said Jane Foley, senior FX strategist at Rabobank.
“In recent months, commentary from a number of BOJ officials has suggested a cautious but tangible increase in confidence that conditions are building to sustain a cycle of rising wage inflation, consumer demand and profits,” commented Jane Foley.
That said, comments from BOJ officials were also clear that the central bank is in no rush to remove stimulus, added Jane Foley.
Elsewhere, the greenback weakened near five-month lows against the Australian and New Zealand dollars, as risk-sensitive currencies gained on the prospect that the US Federal Reserve could start easing interest rates as early as next year.
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