On the morning of November 5, the USD price at commercial banks recorded a week of decline. For example, Eximbank bought at 24,300 VND and sold at 24,690 VND, down 70 VND compared to the end of last week. Similarly, Vietcombank reduced by 80 VND, bringing the buying price down to 24,320 VND and the selling price down to 24,690 VND... The free USD price maintained the buying price at 24,550 VND and the selling price at 24,620 VND.
The world USD price also continued to decline. The USD-Index fell to 105.06 points, 1.6 points lower after a week. In addition, the Japanese Yen also fell sharply when at one point during the week, 1 USD was exchanged for 151.74 yen - close to the lowest level in 33 years of 151.94 yen since July 1990. In Vietnam, Vietcombank bought Japanese Yen at 158.43 VND and sold at 167.7 VND, down more than 1 VND compared to the beginning of the week.
US dollar and Japanese yen post a weekly decline
The Japanese yen also weakened against other currencies, falling to its lowest level against the euro since 2008 as the interest rate differential between the US and Japan remains wide. Long-term US interest rates are currently around 4.9% and those in Japan are 0.95%. This has accelerated the yen sell-off in the market despite the Bank of Japan’s (BoJ) decision to further ease its yield curve control.
However, investors believe that the BoJ's policy will be difficult to change the country's still-weak economic situation. Recently, on November 2, Japanese Prime Minister Fumio Kishida said the government will spend more than 17,000 billion yen ($113 billion) to reduce the economic impact of rising inflation, which will include tax cuts. This economic package will include subsidies to limit the impact of rising fuel prices and utility bills; temporary cuts in income tax and residence tax...
In addition, the US monthly employment data released on November 3 was quite strong, contributing to pushing US interest rates and the USD up again and causing the yen to continue its downward trend...
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