Bank

The Greenback Gains Ground

Last week (July 15-19, 2024), the USD witnessed a slight uptick in the international market after two consecutive weeks of decline, as the euro weakened following the European Central Bank's (ECB) decision to hold interest rates steady.

Administrator

25 July, 2024

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In the international market, the DXY index rose slightly by 0.3 points over the week, reaching 104.37.

The USD recovered in the international market as the euro weakened following the ECB’s decision to hold interest rates steady.

At the policy meeting on Thursday (July 18), the ECB decided to keep the deposit rate at 3.75% after a cut in June and indicated it would wait for further evidence of a sustained decline in inflation towards the 2% target.

The ECB’s current stance aligns with the view of the Federal Reserve, which is expected to delay rate cuts at the upcoming policy meeting on July 30-31.

Source: SBV

Domestically, the Vietnamese dong-to-USD central exchange rate eased by 2 VND/USD compared to the previous week (July 12) to 24,246 VND/USD on July 19, 2024.

The State Bank of Vietnam (SBV) kept the immediate buying rate unchanged at 23,400 VND/USD. Moreover, the immediate selling rate remained at 25,450 VND/USD since April 19. This is the intervention selling rate at which the SBV sells USD to banks with a negative foreign currency position to bring their position back to zero.

Source: VCB

Following a similar trend, Vietcombank’s exchange rate stood at 25,128-25,458 VND/USD (buying – selling), with a decrease of up to 82 VND/USD on the buying side and a mere 2 VND/USD reduction on the selling side.