USD/VND exchange rate trend "disordered"
The foreign exchange market still seems to be disconnected from the world market. In the trading session on June 19, the USD/VND exchange rate fell into a state of "chaos" in the banking market. In many different units, some adjusted the USD price slightly up, others decreased deeply. Meanwhile, in the free market, the USD went down.
Specifically, at the Vietnam Joint Stock Commercial Bank for Industry and Trade (VietinBank), after many adjustments, the USD/VND exchange rate increased by 46 VND/USD for buying but decreased by 40 VND/USD for selling compared to the end of last week. The listed exchange rate is at 23,356 VND/USD - 23,696 VND/USD.
Early this morning, the Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank) had not changed its listed exchange rate. However, by the afternoon, the USD/VND exchange rate at Vietcombank had decreased by VND10/USD to VND23,350/USD – VND23,690/USD.
The USD/VND exchange rate has fallen into a state of "chaos" in the banking market and slightly decreased in the free market. Illustrative photo
BIDV Joint Stock Commercial Bank for Investment and Development listed the USD/VND exchange rate at 23,375 VND/USD - 23,675 VND/USD, an increase of 15 VND/USD in both buying and selling compared to the end of last week.
Meanwhile, at the group of joint stock commercial banks, the exchange rate fluctuated slightly, mainly in the direction of slight increase.
At Vietnam Technological and Commercial Joint Stock Bank (Techcombank), the exchange rate is 23,360 VND/USD - 23,695 VND/USD, up 2 VND/USD for buying, up 3 VND/USD for selling.
The exchange rates at Tien Phong Commercial Joint Stock Bank (TPBank) and Vietnam Export Import Commercial Joint Stock Bank are listed at: 23,350 VND/USD - 23,690 VND/USD, up 1 VND/USD and 23,370 VND/USD - 23,670 VND/USD, unchanged from the end of last week.
In the free market, the USD tends to decrease significantly. At Hang Bac and Ha Trung, the “foreign currency streets” in Hanoi, the USD/VND exchange rate is commonly traded at: 23,470 VND/USD – 23,550 VND/USD.
US market “rests”, US dollar index still increases
Meanwhile, in the world market, the USD still tends to increase despite the US market being closed for holidays and some other strong currencies still raising interest rates.
The DXY, a dollar index that measures the U.S. currency against six major rivals, rose 0.049% to 102.33, not far from a one-month low of 102 it hit on Friday. U.S. markets were closed on Monday for a public holiday.
In an action-packed week of central bank decisions, the Federal Reserve kept interest rates unchanged on Wednesday but hinted that further hikes were on track to keep inflation in check.
The European Central Bank (ECB) raised interest rates by 25 basis points on Thursday and left the door open for more rate hikes, with the Bank of Japan (BOJ) ending the week by backing its ultra-easy policy.
“The Fed’s hawkish stance means the odds of a rate hike next month are very low,” said Marc Chandler, chief market strategist at Bannockburn Forex in New York.
However, investors expect the central bank to complete its tightening in July.
Markets are pricing in a 72% chance of the Fed raising 25 basis points next month, then pausing, the CME FedWatch tool shows.
The data that financial investors will be most interested in this week will be Fed Chairman Jerome Powell's remarks to Congress later this week.
“Next week’s congressional hearings give Chairman Powell a second chance to deliver a more hawkish message,” Citi strategists said in a note on Friday.
Fed officials have also struck a hawkish tone since the meeting.
Citi said sustained strength in the economy has increased optimism around a “soft landing” where inflation falls without a recession.
“However, persistently strong core inflation puts us in the camp of those who think the most likely way for inflation to return to target is through a significant slowdown in growth,” Citi analysts commented.
Source
Comment (0)