Experts point out two reasons to help USD strengthen

Foreign exchange rates, USD/VND exchange rate today, January 31, decreased slightly but remained at a high level. Positive signals from the world's largest economy helped US government bond yields increase slightly again and the USD regained its strength in the international market.

Update foreign exchange rates - Vietcombank USD exchange rates today

1. VCB - Updated: 01/31/2024 09:26 - Time of website supply source
Foreign currency		Buy		Sell
Name	Code	Cash	Transfer
AUSTRALIAN DOLLAR	AUD	15,614.76	15,772.49	16,279.55
CANADIAN DOLLAR	CAD	17,723.08	17,902.10	18,477.63
SWISS FRANC	CHF	27,572.66	27,851.17	28,746.55
YUAN RENMINBI	CNY	3,327.28	3,360.89	3,469.46
DANISH KRONE	DKK	-	3,479.51	3,612.99
EURO	EUR	25,743.45	26,003.49	27,156.77
Sterling Pound	GBP	30,150.84	30,455.40	31,434.49
HONGKONG DOLLAR	HKD	3,039.69	3,070.39	3,169.10
INDIAN RUPEE	INR	-	292.56	304.28
YEN	JPY	160.30	161.91	169.67
KOREAN WON	KRW	15.83	17.59	19.19
KUWAITIAN DINAR	KWD	-	79,051.91	82,217.67
MALAYSIAN RINGGIT	MYR	-	5,104.48	5,216.15
NORWEGIAN KRONER	NOK	-	2,284.48	2,381.63
RUSSIAN RUBLE	RUB	-	258.92	286.65
SAUDI RIAL	SAR	-	6,484.36	6,744.04
SWEDISH KRONA	SEK	-	2,294.38	2,391.95
SINGAPORE DOLLAR	SGD	17,745.58	17,924.83	18,501.08
THAILAND	THB	609.36	677.06	703.04
US DOLLAR	USD	24,185.00	24,215.00	24,555.00

Foreign exchange rates today January 31

Exchange rate developments in the domestic market

In the domestic market, at the beginning of the trading session on January 31, the State Bank announced the central exchange rate of the Vietnamese Dong against the USD decreased by 13 VND, currently at 24,023 VND.

The reference exchange rate at the State Bank's transaction office for buying and selling has slightly decreased, currently at: 23,400 VND - 25,174 VND.

USD exchange rates at commercial banks are as follows:

Vietcombank: 24,305 VND - 24,575 VND

Vietinbank : 24,185 VND - 24,605 VND

Tỷ giá ngoại tệ hôm nay 27/11: Tỷ giá USD, EUR, CAD, Bảng Anh, tỷ giá hối đoái... Mỹ thắt chặt tiền tệ, CPI giảm, đồng bạc xanh rớt theo. (Nguồn: edition.cnn)

(Source: CNN)

Exchange rate developments in the world market

According to TG&VN at 7:15 this morning (January 31), the USD Index - a measure of the greenback's strength against other major currencies - reached 103.41, down 0.19%.

According to Mr. Ngo Dang Khoa, Director of Foreign Exchange, Capital Markets and Securities Services at HSBC Vietnam, there are two reasons why the greenback strengthened in January 2024.

Firstly , recent positive signals from the US labor market and economy, along with statements from members of the US Federal Open Market Committee (FOMC) about continuing to act based on actual data, have caused the market to gradually reduce expectations that the FOMC will soon lower the operating interest rate.

This development caused the yield of US government bonds to increase slightly, causing the USD to regain its strength in the international market. This is one of the fundamental reasons why local currencies in Asia, including Vietnam, have weakened against the USD.

Second, the interest rate differential remained high in the context of relatively excess VND liquidity even in the period before Tet, which also caused the exchange rate to increase rapidly in the first weeks of 2024.

The Federal Reserve's (Fed) FOMC is not expected to change monetary policy at this meeting (January 30-31), but may provide new guidance on future policy plans.

Marc Chandler, chief market strategist at Bannockburn Global Forex in New York, said the Fed may “feel more confident than it did in December that interest rates have reached a level that is sufficient to contain inflation.”

However, “the Fed may not be in a rush to cut rates as soon as the market expects,” Mr. Chandler added.

According to the CME FedWatch survey, markets believe the Fed will keep interest rates unchanged at its policy meeting on January 30-31, but have reduced expectations for the possibility of interest rate cuts in March 2024.

Solid US economic data prompted traders to cut bets on the likelihood of a Fed rate cut in March to 42%, from around 89% a month ago.

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