Foreign exchange prices on December 23, 2024: USD still increases strongly thanks to Fed's move

DNVN - The foreign exchange market on December 23, 2024, continued to witness a strong increase in the USD internationally, after the US Federal Reserve (Fed) signaled it would lower interest rates twice in the coming year.

International USD exchange rate

The Dollar Index (DXY), which tracks the strength of the USD against six major currencies (EUR, JPY, GBP, CAD, SEK, CHF), is currently at 107.62, unchanged from the previous trading day, December 22, 2024.

Over the past week, the US dollar has fallen 0.59% against major currencies, marking a correction after reaching a two-year high in November.

Data from the U.S. Commerce Department shows inflation is trending downward. The Personal Consumption Expenditures (PCE) price index, the Fed's favorite measure of inflation, rose only 0.1% in November, lower than the 0.2% increase of the previous month. Over the past year, the index has risen 2.4%, down from 2.3% the previous month.

After cutting interest rates by another 0.25 percentage points last week, the Fed is expected to cut them by another 0.5 percentage points in 2025, reflecting caution amid cooling inflation and a stable US labor market.

Meanwhile, the euro also edged higher after hitting a monthly low of $1.03435. At the close of trading, it reached $1.044175, up 0.76%, as Europe continued to face pressure from the trade policies of the Donald Trump administration.

Peter Nurse, an expert from Investing.com, commented: “Inflation remains a major concern for the Fed, especially with US consumer prices rising at their fastest pace in seven months. The new administration’s trade policies could add further pressure, forcing the Fed to maintain caution in adjusting interest rates.”

The Fed has revised down its forecast for interest rate cuts in 2025 from four to two, indicating caution in light of new economic signals.

Although the USD tends to depreciate in global markets, it remains stable domestically. Factors such as cooling inflation and Fed policy are shaping the USD's trend, while investors need to monitor further developments in the US economy and fiscal policy.

Domestic USD exchange rate

During the trading session on December 23rd, the State Bank of Vietnam announced the central exchange rate of VND/USD at 24,324 VND.

The reference exchange rate at the State Bank of Vietnam's exchange floor remained unchanged, with buying and selling rates at 23,400 VND and 25,450 VND respectively.

At Vietcombank , the USD exchange rate remained stable at 25,210 VND (buying) and 25,540 VND (selling).

Similarly, BIDV listed unchanged prices compared to the previous session, maintaining them at 25,240 VND for buying and 25,540 VND for selling. Techcombank adjusted the buying price down by 9 VND to 25,195 VND, while the selling price remained unchanged at 25,540 VND/USD.

At Eximbank, the USD exchange rate remained at 23,807 VND - 25,540 VND/USD. Meanwhile, ACB's rate at the end of the week was 24,240 VND - 25,540 VND/USD, unchanged from the previous day.

In the free market, at the end of the day, the USD price remained unchanged on the buying side, while increasing by 10 dong on the selling side, fluctuating around 25,780 dong - 25,880 dong/USD.

Exchange rates of other currencies

The EUR exchange rate at the State Bank of Vietnam's exchange desk has decreased slightly, currently standing at 23,947 VND (buying rate) and 26,467 VND (selling rate).

The Japanese yen exchange rate also fell slightly, listed at the State Bank of Vietnam's exchange floor at 147-162 dong.

Viet Anh (compiled)

Source: https://doanhnghiepvn.vn/kinh-te/gia-ngoai-te-ngay-23-12-2024-usd-van-tang-manh-nho-dong-thai-cua-fed/20241223090449336