Foreign exchange prices on March 5, 2025: USD plummeted, Index fell to 105.59

DNVN - The US dollar experienced significant volatility on March 5, 2025, influenced by concerns about US tariff policies and the possibility of the Fed cutting interest rates in June.

USD exchange rate in the global market

Foreign exchange rates on March 3, 2025: USD remains stable, Index stops at 107.61 points.

The Dollar Index (DXY), which tracks the strength of the USD against a basket of six major currencies (EUR, JPY, GBP, CAD, SEK, CHF), is currently down 1.15% from March 4, 2025, to 105.59 points.

On Tuesday, the US dollar fell to its lowest level in three months as concerns about slowing growth and the impact of tariffs overshadowed any potential support from the new tariffs imposed on Canada, Mexico, and China.

Effective 12:01 AM (Eastern Time), or 05:01 GMT, the US officially implemented a new 25% tariff on goods imported from Mexico and Canada, while raising tariffs on Chinese goods to 20%.

In response to the move, China announced it would impose additional tariffs of 10-15% on some US goods starting March 10. Canada also confirmed it would implement retaliatory measures on Tuesday, while Mexico is expected to take similar action.

Concerns about the trade war and its impact on the global economy should have supported the USD, but recent economic data has not been positive enough, putting significant pressure on the currency and US bond yields.

Manufacturing businesses continued to express concerns about import tariffs in a report released Monday by the Institute for Supply Management, reinforcing a series of weak economic data in recent times.

The index measuring the strength of the USD against major currencies is currently down 0.54%, to 105.96 points - its lowest level since December.

Chris Turner, global market director at ING, commented: "While the US is expanding its tariff policies towards Canada and Mexico, weak domestic economic activity is actually holding back the dollar's appreciation following the tariff news."

As concerns about an economic slowdown and trade conflicts intensified, investors shifted funds into safe-haven assets such as the Japanese yen and the Swiss franc. Both currencies rose nearly 1% on Tuesday as global stock markets plummeted.

The Canadian dollar also rose by about 0.45% to 1.4471 CAD per USD, after having fallen to a one-month low of 1.4542 CAD/USD late Monday as the new tax policy was confirmed.

Meanwhile, the Mexican peso fell 0.3%, trading at 20.76 pesos to one dollar, after briefly dropping to its lowest level since February 3.

Some analysts believe that many investors in the market still expect these tariffs to be quickly removed if an agreement is reached, similar to how the US suspended tariffs on Canada and Mexico in February.

Lee Hardman, senior currency analyst at Japan's MUFG Bank, said: "The bearish reaction of the Canadian dollar and Mexican peso has been fairly limited given the recently imposed tariffs. This reflects the belief that the tariffs may not last, thereby minimizing the negative impact on trade and the economy."

Domestic USD exchange rate

In the domestic market, during the morning trading session on March 5th, the State Bank of Vietnam adjusted the central exchange rate of the Vietnamese Dong against the US Dollar down by 3 dong, to 24,755 dong/USD.

At the State Bank of Vietnam's Exchange, the reference exchange rate for buying and selling also adjusted slightly downwards, currently recorded at 23,568 VND - 25,942 VND/USD.

At Vietcombank , the listed USD exchange rate is 25,360 - 25,750 VND/USD, 30 VND lower in both directions compared to the previous day.

VietinBank is currently offering the lowest price for USD cash on the market, recording 25,210 VND/USD.

Meanwhile, LPBank and OceanBank are buying USD transfers at the lowest price, at 25,232 VND/USD.

HSBC currently offers the highest cash USD buying rate at 25,492 VND/USD.

VietinBank leads with the highest USD transfer purchase price, reaching 25,790 VND/USD.

Regarding the selling price of USD, LPBank and OceanBank have the lowest rates, recording 25,483 VND/USD for cash transactions.

HSBC lists the lowest USD transfer selling rate at 25,722 VND/USD.

SCB Bank offers the highest cash USD selling price on the market, reaching 25,820 VND/USD.

Meanwhile, ABBank holds the leading position for the highest USD transfer selling price, at 25,850 VND/USD.

The EUR exchange rate at the State Bank of Vietnam's Exchange is currently showing a slight increase, trading at 24,644 VND - 27,238 VND.

For the Japanese yen, the exchange rate at the State Bank of Vietnam's Exchange Department decreased slightly, recorded at 158 dong - 174 dong.

Viet Anh (compiled)