Banks reduce prices, buying and selling spread increases

On June 8, Eximbank reduced the USD selling price by 20 VND, down to 23,630 VND, while the buying price remained at 23,250 - 23,330 VND. Vietcombank reduced the USD price by 5 VND, down to 23,285 - 23,315 VND for buying, 23,655 VND for selling... On the contrary, the US dollar price on the free market increased by 10 VND, up to 23,480 VND for buying, 23,530 VND for selling.

Giá USD hôm nay 8.6.2023: Ngân hàng giảm giá, chênh lệch mua bán tăng cao - Ảnh 1. — Gold buying and selling price difference increases

The USD price on the international market fluctuated little before the market received new information. The USD-Index fluctuated around 104 points. The greenback is having unfavorable information affecting the upward momentum. To avoid a financial crisis, the US government passed a law to extend the debt ceiling for the next two years. This means that the US Treasury will issue bonds. Investors and market participants are preparing to witness a large wave of US government bonds worth 1,000 billion USD expected to start this weekend and last for the coming months.

According to the Congressional Budget Office, interest costs on the government debt will reach $645 billion this year and $1.4 trillion in 2033. The average interest rate on federal debt rises as debt matures and is refinanced. In 2024, the average interest rate on government-held debt is expected to be 2.9%, 0.2% higher than in 2023 and 0.7% higher than in 2022. Although rising slowly, the rate then reaches 3.2% in 2024. The massive selling of US bonds will inevitably lead to lower prices and higher yields, which is not very conducive to the upward momentum of the USD.

The Federal Reserve will hold its next meeting next week, where it is likely to pause its first rate hike in 10 meetings. Inflation remains high and rising, as seen in the latest PCE report. In addition, the May jobs report showed that the US economy added 339,000 new jobs and the unemployment rate rose to 3.7%. These are data that could prompt the Fed to pause its rate hikes in mid-June.

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