The US dollar recovered to the 109 mark.

Việt Nam•17/01/2025

Today's USD exchange rate (January 18): Early morning on January 18, the State Bank of Vietnam announced that the central exchange rate of the Vietnamese Dong against the USD increased by 8 dong, currently at 24,341 dong.

Meanwhile, in the US market, the US Dollar Index (DXY), which measures the fluctuations of the US dollar against six major currencies (EUR, JPY, GBP, CAD, SEK, CHF), rose 0.45%, reaching 109.41.

Today's USD exchange rate worldwide

The US dollar rose against other currencies in the last trading session, but ended the week lower after a six-week winning streak, as investors awaited the inauguration of US President-elect Donald Trump and a clear policy roadmap from the new administration.

Conversely, the Japanese yen was poised for its strongest weekly gain in over a month as expectations of a Bank of Japan (BOJ) interest rate hike next week increased, causing the US dollar to fall.

Chart showing the fluctuations of the DXY index over the past 24 hours. Image: Marketwatch

This week, the Japanese yen has risen more than 1% against the US dollar, reversing last week's decline and reaching a one-month high of 154.98 against the US dollar in early trading.

“The yen will remain closely tied to US interest rates,” said Brad Bechtel, global FX director at Jefferies. “I think the cooling of the dollar this week has helped ease pressure on the USD/JPY rate. The BOJ seems poised to raise interest rates next week, and that would benefit the yen. But with the interest rate differential still very large, the USD/JPY rate is unlikely to fall sharply.”

Comments from BOJ officials, along with Japanese data indicating persistent price pressures and strong wage growth, have helped boost market confidence that an interest rate shift is underway, with traders pricing in an 80% chance of the BOJ raising rates next week.

Sources also told Reuters that the central bank is likely to raise interest rates next week unless there is any news that significantly impacts the market following Trump's inauguration.

The US dollar has surged in recent weeks due to rising Treasury yields, reflecting expectations that President-elect Trump's policies could fuel inflation as the US economy stabilizes.

Federal Reserve Governor Christopher Waller gave a speech on January 16th suggesting that three or four interest rate cuts are possible this year. This has led the market to increase bets on a Fed rate cut this year, putting pressure on the US dollar ahead of Trump's return to the White House next week. Accordingly, the currency market is currently pricing in a total of approximately 40 basis points for US interest rate cuts by 2025.

“Given weaker-than-expected inflation data this past week, investors have increased expectations that the Fed will cut interest rates by 25 to 40 basis points,” said Uto Shinohara, senior investment strategist at Mesirow Currency Management.

The market will focus on Donald Trump's new term and the impact of his policies on the market. Investors are currently awaiting Trump's inaugural address on January 20th to better understand his policy moves.

The British pound fell 0.6% to $1.2166 after new data released on January 17 showed that UK retail sales unexpectedly fell in December, raising the risk of an economic recession in the fourth quarter.

Meanwhile, the euro also fell 0.26%, to $1.0276.

USD exchange rate today, January 18: The US dollar recovers to the 109 mark. Photo: Reuters

Today's domestic USD exchange rate

On the domestic market, at the beginning of trading on January 18, the State Bank of Vietnam announced that the central exchange rate of the Vietnamese Dong against the US Dollar increased by 8 dong, currently standing at 24,341 dong.

* The reference exchange rate at the State Bank of Vietnam's exchange floor remains unchanged, currently at: 23,400 VND - 25,450 VND.

The USD exchange rates at commercial banks for buying and selling are as follows:

USD exchange rate	Buy	Sell
Vietcombank	25,120 VND	25,510 VND
Vietinbank	24,995 VND	25,505 VND
MB	25,155 VND	25,515 VND

* The EUR exchange rate at the State Bank of Vietnam's exchange desk has slightly increased, currently standing at: 23,828 VND – 26,336 VND (buying and selling rates).

The EUR exchange rates at commercial banks for buying and selling are as follows:

EUR exchange rate	Buy	Sell
Vietcombank	25,389 VND	26,781 VND
Vietinbank	25,223 VND	26,723 VND
MB	25,639 VND	26,882 VND

* The Japanese Yen exchange rate at the State Bank of Vietnam's exchange desk increased slightly for buying and selling, currently standing at 149 VND – 165 VND.