USD falls sharply, leading position remains intact

Foreign exchange rates, USD/VND exchange rate today, August 26, recorded the Dollar Index stopping at 100.68. The current outlook may be that the USD will weaken slightly

Foreign exchange rate update table - Vietcombank USD exchange rate today

1. VCB - Updated: August 26, 2024 06:27 - Time of website supply source
Foreign currency		Buy		Sell
Name	Code	Cash	Transfer
Australian Dollar	AUD	16,368.48	16,533.82	17,064.69
Canadian Dollar	CAD	17,915.39	18,096.35	18,677.39
SWISS FRANC	CHF	28,624.60	28,913.74	29,842.11
YUAN RENMINBI	CNY	3,428.88	3,463.51	3,575.26
DANISH KRONE	DKK	-	3,656.88	3,797.02
EURO	EUR	27,082.83	27,356.40	28,568.57
Sterling Pound	GBP	31,941.05	32,263.68	33,299.61
HONG KONG DOLLAR	HKD	3,122.18	3,153.72	3,254.98
INDIAN RUPEE	INR	-	297.11	308.99
YEN	JPY	166.65	168.33	176.38
Korean Won	KRW	16.17	17.97	19.60
KUWAITIAN DINAR	KWD	-	81,565.75	84,828.87
MALAYSIAN RINGGIT	MYR	-	5,655.12	5,778.61
NORWEGIAN KRONER	NOK	-	2,314.49	2,412.81
Russian Ruble	RUB	-	259.37	287.13
SAUDI RIAL	SAR	-	6,639.17	6,904.78
SWEDISH KRONA	SEK	-	2,394.29	2,496.01
SINGAPORE DOLLAR	SGD	18,625.37	18,813.51	19,417.57
THAILAND BAHT	THB	644.47	716.08	743.52
US DOLLAR	USD	24,780.00	24,810.00	25,150.00

Exchange rate developments in the domestic market

In the domestic market, according to TG&VN at 7:30 a.m. on August 26, the State Bank announced the central exchange rate of the Vietnamese Dong to the USD at 24,250 VND.

The reference USD exchange rate at the State Bank's Transaction Office is listed at: 23,400 VND - 25,450 VND.

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

Vietcombank: 24,780 VND - 25,150 VND.

Vietinbank : 24,680 VND - 25,130 VND.

Foreign exchange rates, USD/VND exchange rate today, August 26: USD falls sharply, leading position remains intact. (Source: Capital)

Exchange rate developments in the world market

The Dollar Index (DXY), which measures the USD against six major currencies (Euro, JPY, GBP, CAD, SEK, CHF), stopped at 100.68.

Despite expectations that the Federal Reserve will cut interest rates significantly in 2024 and 2025, analysts at Wells Fargo Investment Institute predict the greenback will remain high.

Interest rate differentials have been a key driver of the US dollar's strength over the past few years.

The US dollar has been trading at historically high levels since the Fed began its aggressive rate hike campaign in March 2022. With the Fed poised to start cutting rates, it seems reasonable to expect a depreciation of the US dollar.

However, analysts say the US dollar is likely to remain around current levels, mainly because other major central banks, including the European Central Bank, are also expected to cut interest rates.

The interest rate differential between the US and other developed economies is expected to widen further, which will continue to support the USD.

For example, the European Central Bank is expected to keep interest rates relatively steady, while the Bank of Japan is expected to raise interest rates, although these increases will still leave significant differentials in favor of the USD.

The global economic backdrop plays a key role in the USD’s growth outlook. Meanwhile, the euro area is facing significant economic challenges, including sluggish export demand, which could put further pressure on the euro, providing further support for the USD.

Furthermore, while the US economy is expected to slow, it is still predicted to outperform many of its global peers.

Economic strength, coupled with the Fed's cautious approach to rate cuts, is likely to prevent a sharp decline in the value of the dollar.

The DXY index has remained above its historical average since the Fed began raising interest rates.

“The current outlook is likely to be for a mild weakening of the US dollar,” analysts said.

For investors, this outlook suggests that the US dollar's global leadership will remain intact, even if the Fed changes its monetary policy stance.

The DXY index could fall to the 2024 low of 100.66, followed by the December 2023 low of 100.61, and finally test the psychological level of 100.

On the upside, the index has resistance at 103.5. If the index rises above the above resistance, it could head towards the previous June high of 106.13.

Source: https://baoquocte.vn/ty-gia-ngoai-te-ty-gia-usdvnd-hom-nay-268-dong-usd-rot-manh-vi-the-dan-dau-van-nguyen-ven-283866.html