USD rises to nearly 3-month high

Bảo Anh | 01/11/2025 06:37

Rising sharply to a nearly 3-month high, the US dollar remains under pressure from the US government's shutdown.

USD Index

On the morning of October 31, in the US market, the USD Index (DXY) measuring the fluctuations of the greenback against 6 major currencies increased by 0.28%, standing at 99.82 points. This is the highest level in 2.75 months.

The dollar was supported by tough comments from Kansas City Fed President Jeff Schmid andex- Fed President Dallas Lorie Logan, both of whom cited concerns against rate cuts.

In addition, the stronger-than-expected October PMI Chicago also helped the greenback consolidate its upward momentum.

The US dollar continues to benefit from Fed Chairman Jerome Powell's cautious comments on Wednesday, when he said a rate cut at the December meeting was not a certain thing.

However, the USD's gains were limited by a strong recovery in the stock market today, reducing demand for safe-haven assets, the USD.

However, the USD is still under pressure from the US government's shutdown. The longer it takes, the greater the risk of damage to the US economy, and the higher the possibility of the Fed being forced to cut interest rates.

The market is currently pricing in a 62% chance that the Fed will cut interest rates by 25 basis points at the FOMC meeting on December 9-10.

In total, the market forecasts that the Fed will cut about 82 basis points by the end of 2026, bringing the federal funds rate down to 3.06%, compared to 3.88% today.

VND vs USD exchange rate

In the domestic market, at the beginning of the trading session on November 1, the State Bank announced that the central exchange rate of the Vietnamese Dong increased by 2 VND to USD, currently at 25,093 VND.

The reference USD exchange rate at the State Bank's Buying - Selling Transaction Office remains unchanged, currently at: 23,889 VND - 26,297 VND.

At most commercial banks, the USD price today increased and decreased depending on the brand.