USD Plummeting Prices

Last week (04-08/03/2024), the USD price declined significantly in the international market following the remarks by Jerome Powell, the Chairman of the U.S. Federal Reserve, who indicated that interest rate cuts could occur this year.

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On the international market, the USD-Index fell by 1.15 points compared to the previous week, to 102.74 points.

The price of USD on the international market continues to decline sharply as Chairman Jerome Powell said in his testimony before the Senate Banking Committee that the Fed is waiting to be more confident that inflation is holding at 2%. When that confidence is achieved, it will be an appropriate time to start cutting back to avoid pushing the economy into a recession.

Powell had previously stated that rate cuts are still possible in the coming months, but only if there is additional evidence of reduced inflation.

Source: SBV

On the domestic front, the exchange rate between the Vietnamese dong and USD decreased by 6 dong/USD compared to the previous week (session 01/03), to 23,996 dong/USD in the 08/03 session.

The State Bank of Vietnam (SBV) maintained the spot buying rate unchanged at 23,400 dong/USD. Meanwhile, commercial banks increased the spot selling rate by 7 dong/USD compared to the 01/03 session, to 25,145 dong/USD.

Source: VCB

Meanwhile, the quoted exchange rate at Vietcombank increased by 30 dong/USD in both directions, to 24,470 dong/USD (buying) and 24,840 dong/USD (selling).

Source: VietstockFinance

Khang Di