The USD/VND exchange rate surged.
The US dollar had an unsuccessful November, mostly trending downwards. After several days of ceding the spotlight to gold, the USD/VND exchange rate unexpectedly surged on the morning of November 30th.
At Vietnam Foreign Trade Commercial Bank ( Vietcombank ), the USD/VND exchange rate is trading at 24,090 VND/USD – 24,430 VND/USD, an increase of 45 VND/USD in both buying and selling rates compared to the end of yesterday.
Compared to the last trading session of October, the US dollar at Vietcombank "plunged," falling by 300 VND/USD, equivalent to 1.23% in both buying and selling rates.
The Vietnam Investment and Development Bank ( BIDV ) is currently listing the USD/VND exchange rate at 24,120 VND/USD – 24,420 VND/USD, an increase of 40 VND/USD in both buying and selling rates. However, after one month, the exchange rate has decreased by 295 VND/USD, equivalent to 1.21%.
The USD/VND exchange rate surged sharply as the US dollar index recovered from a 3.5-month low. Photo: Getty Images
The USD/VND exchange rate at Vietnam Joint Stock Commercial Bank for Industry and Trade ( VietinBank ) is being bought and sold at: 24,088 VND/USD – 24,428 VND/USD, an increase of 33 VND/USD in the buying rate but a decrease of 47 VND/USD in the selling rate.
Orient Commercial Bank (OCB) listed the exchange rate at: 24,073 VND/USD – 24,553 VND/USD, an increase of 20 VND/USD for the buying rate and 35 VND/USD for the selling rate.
On the free market, the USD/VND exchange rate also heated up and was higher than in the banking system. In Hang Bac and Ha Trung, the "foreign exchange 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. The exchange rate varied by about 10 VND/USD between different shops.
The US dollar recovers from a 3.5-month low.
The US dollar rose from its lowest level in more than three months 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, in November, the dollar was still on track to record its biggest monthly decline in a year, weighed down by expectations of a US Federal Reserve interest rate cut in the first half of 2024.
The dollar extended its gains on news that U.S. gross domestic product grew at an annualized rate of 5.2% in the last quarter, faster than the previously reported 4.9%. The U.S. Commerce Department said this was the fastest growth since the fourth quarter of 2021 in its second estimate of third-quarter GDP.
Economists surveyed by Reuters had projected revised GDP growth to 5.0%.
“The GDP data helped the dollar a little. Investment was a bit stronger, and that’s a cyclical factor,” said Erik F. Nelson, macro strategist at Wells Fargo in London.
"So, if we see some strength from the cyclical side of the economy, that could challenge the interest rate cut narrative a bit," Erik F. Nelson analyzed.
Comments from Federal Reserve Governor Christopher Waller suggesting the possibility of interest rate cuts in the coming months caused U.S. bond yields and the dollar to slide on Tuesday.
The dollar index, which tracks the currency against six others, ultimately rose 0.1% to 102.85. Earlier in Asian trading, the dollar had touched its lowest level 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 fell sharply.
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