USD Index
On November 26, in the US market, the USD Index (DXY) measuring the fluctuations of the greenback against 6 major currencies continued to decrease by 0.28%, anchored at 99.92 points. While the index still maintained its nearly 1% increase from last week.
The US dollar fell on Tuesday after a series of mixed economic data - some of which were delayed and therefore outdated - further reinforced expectations that the Federal Reserve (FED) will cut interest rates next month.
"Stable production and retail prices show that consumers are slowing down slightly, which helps the possibility of the Fed cutting interest rates in December remain intact," said Scott Helfstein, chief investment strategist at Global X.
Traders are pricing in an 83% chance of a rate cut next month, up from 50% last week, according to the CME FedWatch tool. This major volatility shows that the market is having difficulty predicting interest rate policy when there is a lack of data due to the longest government shutdown in US history, which ended on November 14.
Francesco Pesole, a currency analyst at ING, said that some "year-end portfolio restructuring flows before Thanksgiving may be hampering the USD's decline".
However, he noted in a report to customers: "Unless the market changes its view towards a more hawkish direction, the USD is too strong compared to the current short-term interest rate differential, and we see a significant downside risk."
VND vs USD exchange rate
In the domestic market, at the beginning of the trading session on November 26, the State Bank announced that Vietnam's central exchange rate increased by 2 VND, currently at 25,146 VND.
The reference USD exchange rate at the State Bank's Buying - Selling Transaction Office is currently at: 23,939 VND - 26,353 VND, increasing by 2 VND in both directions.
At commercial banks, USD prices have mostly increased sharply compared to the previous session.
Most banks listed USD selling prices at VND26,403/USD, up VND2/USD.
The bank with the highest cash and transfer price of USD: HSBC (26,264 VND/USD).
The difference between buying and selling prices at banks fluctuates within a large range of 139-396 VND/USD.
