Foreign exchange prices on October 24, 2024: USD increased sharply, reaching the highest level in the past 3 months

DNVN - On October 24, 2024, the value of the USD increased sharply, reaching a 3-month high compared to the Japanese Yen, due to the outstanding strength of the US economy .

USD exchange rate on international market

The Dollar Index (DXY), a measure of the USD against six major currencies (EUR, JPY, GBP, CAD, SEK, CHF), is currently at 104.42 points, up 0.35%.

The US dollar has surpassed the 153 Japanese Yen mark for the first time in nearly three months, thanks to the strength of the US economy and the difference in the pace of interest rate cuts among major central banks around the world .

The greenback is on track for its 16th gain in 18 trading sessions and its fourth straight weekly gain, as a slew of upbeat economic data has dampened expectations for the size and pace of interest rate cuts by the Federal Reserve, pushing U.S. Treasury yields higher.

The yield on the benchmark 10-year US Treasury note rose 3.4 basis points (bps) to 4.24%, after hitting a three-month high of 4.26%. After five straight months of declines, the 10-year yield rose about 40 basis points in October. Investors are also preparing for the US presidential election on November 5.

"We're moving from the first phase to the second phase, which, if you look at it, was dependent on the US economy and strong data over the past month or so... and this second phase could be influenced by politics ," said George Vessey, chief FX strategist at Convera in London. "But the short-term rally in the dollar is more likely to be driven by Trump-related risk aversion than the interest rate story, although that may be overblown, but yields will continue to rise."

The dollar index, which measures the greenback against a basket of major currencies, rose 0.32% to 104.43, after hitting 104.57, its highest since July 30. The euro fell 0.18% to $1.0778 after hitting a low of $1.076, its lowest since July 3. The pound fell 0.49% to $1.2919.

Recent comments from Fed officials suggest the central bank will take a gradual approach to rate cuts.

The central bank's "Beige Book" released on Wednesday showed U.S. economic activity was largely unchanged from September to early October, although companies continued to ramp up hiring, bolstering expectations that the Fed will only cut interest rates modestly, by about 25 basis points, at its November meeting.

According to the CME FedWatch tool, the market is currently pricing in an 88.9% chance of a 25 basis point rate cut at its November meeting, and an 11.1% chance that the central bank will leave rates unchanged. A month ago, the market was pricing in a cut of at least 25 basis points, with a 53% chance of a cut of up to 50 basis points.

The upcoming US presidential election is also adding to volatility in the foreign exchange market, as markets increasingly anticipate a landslide victory for Republican candidate and former President Donald Trump. This could lead to inflationary economic policies, such as higher tariffs.

The Bank of Canada has cut its benchmark interest rate by 50 basis points to 3.75%, in line with market expectations. It was the bank’s biggest move in more than four years, with positive signs that the country is returning to a period of low inflation. The Canadian dollar weakened 0.14% against the US dollar, with the current exchange rate at CAD1.38/USD.

European Central Bank (ECB) President Christine Lagarde said the bank would be cautious in deciding whether to cut interest rates further, based on upcoming data.

In addition, ECB chief economist Philip Lane said recent data on the eurozone economy has been weak, raising concerns about the bloc's growth prospects, but the ECB still expects the economy to recover.

Domestic USD exchange rate

On October 24, 2024, the USD exchange rate rose above 153 against the Yen for the first time in nearly 3 months, thanks to the strength of the US economy and forecasts of differences in the pace of interest rate cuts by the world's major central banks.

Opening today's trading session, the State Bank of Vietnam announced the central exchange rate between the Vietnamese Dong and the USD increased by 10 VND, currently at 24,250 VND.

Currently, the exchange rate at commercial banks is fluctuating between 23,400 - 25,450 VND/USD. The State Bank of Vietnam has also set the USD buying and selling rate to the range of 23,400 - 25,450 VND/USD.

The USD exchange rate at Vietcombank is currently at 25,190 - 25,462 VND for buying and selling. Currently, the USD buying and selling rates are fluctuating between 24,000 - 25,500 VND/USD.

The EUR exchange rate at the State Bank of Vietnam has slightly decreased, currently at the buying and selling rates of 24,867 VND - 27,484 VND.

The Japanese Yen exchange rate at the State Bank of Vietnam also decreased slightly, currently at the buying and selling rates of 152 VND - 168 VND.

Lan Le (t/h)

Source: https://doanhnghiepvn.vn/kinh-te/gia-ngoai-te-ngay-24-10-2024-usd-tang-gia-manh-dat-muc-cao-nhat-trong-3-thang-qua/20241024081512054