USD recovers from 3.5-month “bottom”

USD/VND exchange rate increased

The USD had an unsuccessful November, with a downward trend. After many days of giving the stage to gold, on the morning of November 30, the USD/VND exchange rate suddenly increased strongly.

At the Joint Stock Commercial Bank for Foreign Trade of Vietnam ( Vietcombank ), the USD/VND exchange rate is traded at: 24,090 VND/USD - 24,430 VND/USD, an increase of 45 VND/USD in both buying and selling directions compared to the end of yesterday.

Compared to the last session of October, the USD at Vietcombank "plummeted", down 300 VND/USD, equivalent to 1.23% in both buying and selling directions.

Joint Stock Commercial Bank for Investment and Development of Vietnam ( BIDV ) is listing the USD/VND exchange rate at: 24,120 VND/USD - 24,420 VND/USD, up 40 VND/USD in both buying and selling directions. After 1 month, the exchange rate decreased by 295 VND/USD, equivalent to 1.21%.

The USD/VND exchange rate increased sharply in the context of the US dollar index recovering from the 3.5-month "bottom". Photo: Getty Images

The USD/VND exchange rate at Vietnam Joint Stock Commercial Bank for Industry and Trade ( VietinBank ) is bought and sold at: 24,088 VND/USD - 24,428 VND/USD, up 33 VND/USD for buying but down 47 VND/USD for selling.

Orient Commercial Joint Stock Bank (OCB) listed the exchange rate at: 24,073 VND/USD - 24,553 VND/USD, up 20 VND/USD for buying, up 35 VND/USD for selling.

In the free market, the USD/VND exchange rate also heated up and was higher than in the banking system. At Hang Bac and Ha Trung, the “foreign currency streets” in Hanoi, the USD/VND exchange rate was commonly bought and sold at: 24,570 VND/USD - 24,650 VND/USD, an increase of about 20 VND/USD compared to the end of yesterday. At different stores, the transaction price differed by about 10 VND/USD.

USD recovers from 3.5-month “bottom”

The US dollar rose from a more than three-month low as investors consolidated positions after four days of losses, supported by data showing the world's largest economy grew faster than initially expected in the third quarter.

The greenback rose against most currencies except the Swiss franc and the New Zealand dollar. However, the dollar was still on track for its biggest monthly decline in a year in November, weighed down by expectations of a Federal Reserve interest rate cut in the first half of 2024.

The dollar extended gains on news that U.S. gross domestic product grew at an annualized rate of 5.2% last quarter, faster than the previously reported 4.9%. This was the fastest growth since the fourth quarter of 2021, the Commerce Department said in its second estimate of third-quarter GDP.

Economists polled by Reuters had expected GDP growth to be revised up to 5.0%.

“The GDP data helped the dollar a little bit. Investment was a little stronger and that’s a cyclical factor,” said Erik F. Nelson, macro strategist at Wells Fargo in London.

“So if we see some strength on the cyclical side of the economy, that could challenge the rate cut narrative a little bit,” said Erik F. Nelson.

Comments from Fed Governor Christopher Waller suggesting the possibility of interest rate cuts in the coming months sent US bond yields and the dollar sliding on Tuesday.

The dollar index, which tracks the currency against six others, was last up 0.1% at 102.85. Earlier in the Asian session, the dollar hit its lowest since early August at 102.46.

The euro fell 0.2% against the dollar to $1.0968, pressured by inflation data from Germany, Europe's largest economy, which showed the pace of price increases slowed to 2.3% year-on-year in November from 3% in October. Inflation in Spain also slowed sharply.

Source: https://www.congluan.vn/dong-usd-phuc-hoi-tu-day-35-thang-post274532.html