USD hits new bottom, "holding breath" waiting for Fed's reaction

Foreign exchange rates, USD/VND exchange rate today August 21, the USD continued to hit a new 7-month low in the last trading session, as traders are waiting for comments from Federal Reserve Chairman Jerome Powell later this week.

Foreign exchange rate update table - Vietcombank USD exchange rate today

1. VCB - Updated: August 21, 2024 09:58 - Time of website supply source
Foreign currency		Buy		Sell
Name	Code	Cash	Transfer
Australian Dollar	AUD	16,384.98	16,550.48	17,081.95
Canadian Dollar	CAD	17,839.50	18,019.70	18,598.35
SWISS FRANC	CHF	28,485.46	28,773.19	29,697.16
YUAN RENMINBI	CNY	3,422.17	3,456.74	3,568.28
DANISH KRONE	DKK	-	3,648.25	3,788.07
EURO	EUR	27,020.16	27,293.09	28,502.57
POUND STERLING	GBP	31,650.59	31,970.29	32,996.93
HONG KONG DOLLAR	HKD	3,118.44	3,149.94	3,251.09
INDIAN RUPEE	INR	-	296.80	308.68
YEN	JPY	166.57	168.25	176.30
Korean Won	KRW	16.22	March 18	19.66
KUWAITIAN DINAR	KWD	-	81,396.33	84,653.00
MALAYSIAN RINGGIT	MYR	-	5,653.17	5,776.64
NORWEGIAN KRONER	NOK	-	2,327.04	2,425.91
Russian Ruble	RUB	-	260.18	288.03
SAUDI RIAL	SAR	-	6,623.04	6,888.03
SWEDISH KRONA	SEK	-	2,393.24	2,494.92
SINGAPORE DOLLAR	SGD	18,621.91	18,810.01	19,414.04
THAILAND BAHT	THB	646.13	717.93	745.44
US DOLLAR	USD	24,720.00	24,750.00	25,090.00

Exchange rate developments in the domestic market

In the domestic market, according to TG&VN at 7:30 a.m. on August 21, the State Bank announced the central exchange rate of the Vietnamese Dong against the USD at 24,251 VND, down 10 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: 24,710 VND - 25,080 VND.

Vietinbank : 24,620 VND - 25,070 VND.

The USD exchange rate in the free market this morning slightly adjusted in both buying and selling directions compared to the previous session. At the end of the trading day on Tuesday (August 20), the central exchange rate was stable while the USD/VND exchange rate at some commercial banks decreased simultaneously and there was a difference between commercial banks, where it dropped to the lowest at 25,080 VND/USD.

Exchange rate developments in the world market

The US dollar continued to hit a fresh seven-month low in the last trading session, as traders awaited comments from Federal Reserve Chairman Jerome Powell later this week, which could provide clues on the pace of the US monetary easing cycle.

Meanwhile, the EUR closed the trading session at 1.1078 USD, after touching 1.1087 USD, the highest level since December 28 in the previous trading session.

This week, the market's focus is on Chairman Powell's speech at the annual meeting of central banks in Jackson Hole, along with the minutes of the Fed's most recent meeting.

Some analysts say the Fed will decide in the coming weeks whether to cut 50 to 75 basis points this year, or 150 basis points or more. They add that Jackson Hole is the first chance for the Fed to push back against the possibility of a 50 basis point cut at one of its remaining three meetings this year.

While the labor market slowdown has led to expectations of faster monetary easing, upbeat retail sales numbers have changed expectations. However, the U.S. economy remains “vulnerable to a financial shock,” said Thierry Wizman, global FX and interest rates strategist at Macquarie.

The market is pricing in a total of 94 basis points of Fed rate cuts this year. Most economists polled by Reuters expect the Fed to ease by 25 basis points at each of its remaining three meetings this year.

Expectations about the outcome of the US presidential election are also weighing on the greenback. Investors expect the greenback to rise if Donald Trump wins because tariffs would support the currency and higher fiscal spending would boost interest rates.

The Japanese yen weakened slightly, currently at 146.98 yen per dollar, still anchored near a near two-week high it hit in the previous session, but well off the seven-month high of 141.675 it hit in early August.

Tokyo government interventions early last month and a surprise interest rate hike pulled the yen off a 38-year low of 161.96.

Investors will be focused on Bank of Japan Governor Kazuo Ueda's appearance before parliament on August 23. Mr. Ueda is expected to discuss the Bank of Japan's decision to raise interest rates last month.

Analysts say the Yen is likely to continue to appreciate slowly as carry trades are gradually eliminated.

Source: https://baoquocte.vn/ty-gia-ngoai-te-ty-gia-usdvnd-hom-nay-218-dong-usd-xac-lap-day-moi-nin-tho-cho-phan-ung-cua-fed-283357.html