US dollar slides, markets struggle with Fed cut

Foreign exchange rates, USD/VND exchange rate today, September 20th: The US dollar is falling as the market grapples with the 50 basis point interest rate cut from the US Federal Reserve (Fed), as well as the Fed's shift to a dovish stance on monetary policy.

Exchange rate movements in the domestic market

On the domestic market, according to TG&VN 's report at 7:40 AM on September 20th, the State Bank of Vietnam announced that the central exchange rate of the Vietnamese Dong against the US Dollar increased by 16 dong, currently standing at 24,167 dong.

The reference exchange rate at the State Bank of Vietnam's exchange floor increased slightly for buying and selling, currently standing at: 23,400 VND - 25,325 VND.

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

Vietcombank : 24,380 VND - 24,750 VND.

Vietinbank : 25,115 VND - 25,425 VND.

Foreign exchange rates, USD/VND exchange rate today, September 20th: The US dollar is falling as the market grapples with the Fed's 50 basis point interest rate cut.

Exchange rate movements in the global market.

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), fell 0.38% to 100.64.

The US dollar slipped in a volatile trading session as markets grappled with the Federal Reserve's 50-basis-point interest rate cut and its shift toward a more dovish monetary policy stance.

Investor expectations had largely shifted to a dovish stance in the days leading up to the Fed's interest rate cut on August 18, with money markets pricing in a 65% chance of a 50 basis point cut, while economists leaned toward a 25 basis point cut.

The DXY index fell 0.38% to 100.64. The index had briefly slipped to its lowest level in over a year at 100.21 in the previous session. The money market is pricing in a total of 72 basis points more in interest rate cuts in 2024 and 192 basis points by September 2025.

The US Treasury yield curve, which measures the gap between the yields on 2-year and 10-year Treasury bonds and is considered an indicator of economic expectations, has climbed and reached its highest level since June 2022.

According to data released by the U.S. Department of Labor on September 19, the number of initial jobless claims in the state unexpectedly fell to 12,000 last week, indicating growth in the labor market.

Fed policymakers on September 18 projected that the benchmark interest rate would be cut by another 50 basis points by the end of this year, 100 basis points next year, and a final 50 basis points in 2026.

Conversely, the EUR rose 0.4%, reaching $1.1163. Against the yen, the USD gained 0.33%, reaching 142.73, as the market anticipated the Bank of Japan would keep interest rates unchanged at its policy meeting today, September 20th.

The US dollar fell 0.08% to 0.847 against the Swiss franc and 0.34% to 7.070 against the Chinese yuan.

Meanwhile, the British pound reached its highest level against the US dollar since March 2022, after the Bank of England's Monetary Policy Committee (MPC) voted to keep interest rates unchanged. The pound rose 0.5% against the greenback to $1.3278, after hitting a high of $1.3314.

The AUD and NZD received support from domestic data surprises. Australian employment data exceeded forecasts for the third consecutive month in August. Consequently, the AUD rose 0.77% against the greenback, reaching 0.6815 USD.

Source: https://baoquocte.vn/ty-gia-ngoai-te-ty-gia-usdvnd-hom-nay-209-dong-usd-truot-doc-thi-truong-vat-lon-voi-dot-cat-giam-cua-fed-286993.html