On October 18, the State Bank of Vietnam posted the central exchange rate at 24,213 VND/USD, a 14-dong increase from October 17. Consequently, the ceiling and floor rates were set at 25,423 VND/USD and 23,000 VND/USD, respectively.
Throughout the week of October 14–18, the State Bank made significant upward adjustments to the exchange rate, resulting in a 52-dong increase per USD by the week’s end compared to the rate on October 14.Â
Commercial banks witnessed a rise of approximately 380 dong in their exchange rates during the same week.
On October 18, commercial banks also made substantial increases to their exchange rates compared to the previous day.
Vietcombank’s rates stood at 25,010–25,2400 VND/USD for buying and selling, respectively, a 30-dong rise for each direction from October 17.
HSBC increased its buying rate by 209 dong, trading at 25,082 VND/USD, and its selling rate by 211 dong, reaching 25,308 VND/USD, compared to the previous day.
Eximbank, Sacombank, and Techcombank all listed their selling rate at 25,420 VND/USD.
During the week of October 14–18, commercial bank exchange rates climbed by approximately 380 dong.
At foreign currency exchange points in Hanoi, the buying and selling rates for USD on October 18 were listed at 25,260–25,360 VND/USD, remaining unchanged since October 16.
As of October 17 (US time), the US Dollar Index (DXY), which measures the strength of the US dollar against a basket of major currencies, stood at 103.58 points.
DXY surged to its highest level in 11 weeks after data revealed that US retail sales for September exceeded expectations, bolstering the likelihood of a moderate interest rate cut by the Federal Reserve in the near future. Retail sales rose by 0.4% in September, up from the 0.1% increase in August. Meanwhile, weekly jobless claims reports indicated a severe impact on the job market due to hurricanes Helene and Milton, although there were few signs suggesting further deterioration.
Recent US economic data presents a mixed picture of a cooling yet resilient economy as it approaches a crucial period politically and economically. In less than three weeks, the country will hold its next presidential election, and the Fed will decide whether to cut interest rates further. Some Fed policymakers have recently stated that they are considering a 0.25% reduction in the base rate in November or even maintaining the current rate.
The European Central Bank announced a 25-basis point cut in its key interest rate from 3.5% to 3.25% at its second consecutive meeting yesterday, accelerating the pace of policy easing to support a weakening economy. The ECB stated that it would continue to adjust interest rates at each meeting based on incoming economic data. Markets now anticipate another rate cut by the ECB at its next meeting in December, bringing the rate down to 3%.
The Greenback Rules: When Bank Rates Trump the Free Market
As of the morning session on October 18th, the USD/VND exchange rate rose by 30 VND in both buying and selling, trading at 25,010 – 25,400 VND/USD. The selling price of USD at banks was 40 VND higher per USD than in the free market.
The Fed’s Rate Cut: Four Global Economic and Financial Impacts on Vietnam and the World
Dr. Can Van Luc and the BIDV Training and Research Institute’s team of experts have provided a swift assessment of the Fed’s official rate cut trajectory and its implications for the global and Vietnamese economy.
The Golden Loop: A Record-Breaking Price Surge
This morning (September 19th), domestic gold ring prices soared to a record high of 79.2 million VND per tael, an unprecedented level. The selling price of SJC gold reached an astounding 82 million VND per tael.
