Foreign exchange prices on December 20, 2024: USD maintains strong growth momentum

DNVN - On December 20, 2024, the central exchange rate between Vietnamese Dong and USD was adjusted by the State Bank to increase by 26 VND, reaching 24,304 VND.

USD exchange rate on the world market

The Dollar Index (DXY), which represents the strength of the USD against a basket of six major currencies (EUR, JPY, GBP, CAD, SEK, CHF), increased by 0.2 points, stopping at 108.4 at the end of December 19, 2024.

This peak in the past two years comes from the US Federal Reserve's interest rate cut and positive signals from the US economy .

Specifically, the Fed decided to cut interest rates by another 25 basis points, bringing the benchmark interest rate down to 4.25% - 4.5%. This move is completely in line with market expectations. At the same time, the Fed also announced that it will pause its monetary policy easing cycle in 2025 when inflation and the labor market gradually stabilize.

The yield on the benchmark 10-year US Treasury note rose to 4.446%, up 6.1 basis points, marking a four-week high. This further strengthened the value of the US dollar, helping the greenback gain strongly against major currencies.

The strong USD has put great pressure on other currencies:

- The Euro (EUR) fell 1.17% to $1.03695, the lowest in three weeks.

- The Swiss franc (CHF) lost 0.89% to $0.90020, after hitting a July high of $0.90150.

- The British pound (GBP) fell to $1.25860, down 0.98%, also a three-week low.

In Asia, the Japanese yen (JPY) fell to $154.63, marking a three-week low despite the Bank of Japan (BOJ) expected to keep interest rates unchanged. The South Korean won fell sharply to $1,454.41, its lowest since March 2009.

The Australian dollar (AUD) also fell to $0.62225, its lowest level since October 2022, as the dollar continued to strengthen. Meanwhile, the Norwegian krone (NOK) fell 1.54% to $11.3677, amid expectations that the Norwegian Central Bank will keep interest rates unchanged in the near future.

Fed Chairman Jerome Powell stressed at a press conference that “although the labor market and inflation are stabilizing, the Fed still needs to closely monitor economic data to ensure that rate cuts do not undermine the economic recovery.”

The Federal Open Market Committee (FOMC) affirmed that the US economy still maintains strong growth, unemployment remains low, while inflation tends to increase steadily. The Fed will consider carefully before making interest rate adjustments in 2025.

The Fed's policies and positive signals from the economy have made the USD the focus of the global financial market, attracting international investment capital flows.

The greenback is at a two-year high and is likely to continue its near-term rally, supported by support from the Fed and government bond yields. However, experts warn that the dollar could fall in the long run if the Fed continues to pause its policy easing and other central banks boost economic stimulus.

In this context, closely monitoring the international economic situation and policies from the Fed will help businesses and investors make trading decisions as well as manage exchange rate risks effectively. Preparing for volatility scenarios is the key to optimizing investments in the coming period.

Domestic USD exchange rate

In the domestic market, the central exchange rate of Vietnamese Dong to USD announced by the State Bank on the morning of December 20 was 24,304 VND, an increase of 26 VND compared to the previous day.

The reference exchange rate at the State Bank of Vietnam remains unchanged, at 23,400 VND - 25,450 VND for buying and selling.

At Vietcombank, the USD exchange rate remained at 25,189 - 25,519 VND/USD (buy - sell), unchanged from the previous session.

BIDV Bank listed the buying and selling rates at 25,219 - 25,519 VND/USD, unchanged from the previous trading session. Techcombank adjusted the buying price up 7 VND, to 25,204 VND/USD, while the selling price remained unchanged, maintained at 25,491 VND/USD.

Eximbank increased the buying price by 19 VND, keeping the selling price unchanged, trading at 23,807 - 25,519 VND/USD. ACB increased the buying price by 30 VND, while the selling price remained unchanged, listed at 24,240 VND - 25,519 VND/USD (buying - selling).

On the free market, the USD/VND exchange rate at the end of December 20 increased by 105 VND for buying and 125 VND for selling, trading at 25,707 - 25,827 VND/USD.

The EUR exchange rate at the State Bank of Vietnam slightly decreased, currently listed at the buying and selling rates of 23,953 VND - 26,475 VND.

The Japanese yen exchange rate at the State Bank of Vietnam also decreased slightly, trading at the buying and selling rates of 149 VND - 165 VND.

Viet Anh (t/h)

Source: https://doanhnghiepvn.vn/kinh-te/gia-ngoai-te-ngay-20-12-2024-usd-duy-tri-da-tang-manh/20241220094612732