Foreign exchange prices on September 20, 2024: USD depreciates in the face of the Fed's huge interest rate cut

USD exchange rate on the world market

The Dollar Index (DXY), which measures the USD against six major currencies (EUR, JPY, GBP, CAD, SEK, CHF), stopped at 100.93 points, down 0.18 points compared to the transaction on September 19, 2024.

The US dollar slid in a volatile trading session as markets grappled with a 50 basis point interest rate cut from the US Federal Reserve (Fed), as well as the Fed's shift to an easing stance on monetary policy.

Investor expectations had largely turned dovish in the days leading up to the Fed’s rate cut on August 18, with money markets pricing in about a 65% chance of a 50 basis point cut, while economists were leaning toward a 25 basis point cut.

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

In contrast, the EUR rose 0.4% to $1.1163. Against the yen, the USD rose 0.33% to $142.73 as the market expected the Bank of Japan to keep interest rates unchanged at its policy meeting today, September 20.

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 pound hit its highest level since March 2022 against the dollar 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 were supported by domestic data surprises. Australian employment data beat forecasts for the third consecutive month in August. As a result, the AUD rose 0.77% against the greenback to $0.6815.

Domestic USD exchange rate

In the domestic market, at the beginning of the trading session on September 20, the State Bank of Vietnam (SBV) announced the central exchange rate of the Vietnamese Dong against the USD increased by 16 VND, currently at 24,167 VND.

Currently, the permitted exchange rate of commercial banks fluctuates from 23,400 - 25,450 VND/USD. The USD exchange rate has also been brought to the buying and selling range of 23,400 to 25,450 VND/USD by the State Bank of Vietnam.

The bank USD exchange rate, foreign exchange rate and domestic USD price this morning recorded a decrease at banks. Specifically, Vietcombank has a buying price of 24,380 and a selling price of 24,750, down 20 VND compared to the selling price compared to the trading session on September 19. The current USD buying and selling prices are in the range of 24,000 - 25,500 VND/USD.

The USD exchange rate in the free market this morning continued to increase sharply compared to the previous session. At the Hanoi market, at 6:26 a.m., the USD was traded (buying - selling) at around 24,950 - 25,050 VND/USD, an increase of 8 VND/USD for buying and selling compared to the same trading session yesterday morning.

Source: https://doanhnghiepvn.vn/kinh-te/gia-ngoai-te-ngay-20-9-2024-usd-giam-gia-doi-diendot-cat-giam-lai-suat-khong-lo-cua-fed/20240920073408363