Morning of December 12th: The central exchange rate decreased by 6 dong.

According to a survey by thoibaonganhang.vn, as of 9:00 AM today (December 12th), the central exchange rate decreased by 6 dong compared to the previous session. The buying and selling prices of USD at all commercial banks were adjusted sharply downwards, with a common margin of 20-43 dong compared to the previous session.

The US dollar fluctuated wildly this morning, falling to multi-month lows against the euro, Swiss franc, and British pound, extending its losses from the previous session, after the Federal Reserve cut interest rates by 25 basis points.

The Swiss franc received support from the Swiss National Bank's (SNB) decision to keep interest rates unchanged. The US dollar fell 0.6% against the franc, to 0.7947, after earlier touching its lowest level since mid-November.

In early trading, the USD received some short-term support as Asian stocks and US stock futures fell following a disappointing earnings report from cloud computing giant Oracle, raising concerns that the cost of investing in artificial intelligence (AI) infrastructure is rising faster than profitability. However, this support quickly disappeared once the US market opened.

The euro rose 0.4% to $1.1740, after earlier touching its highest level against the dollar since October 3. Meanwhile, the British pound remained flat at $1.3387, after briefly hitting a near two-month high.

The US dollar also weakened against the yen, falling 0.3% to 155.61 JPY/USD.

The Fed lowered interest rates by 25 basis points at its meeting on Wednesday. However, because this move was anticipated, the market reaction largely reflected the overall message, economic forecasts, and the degree of divergence in the vote, rather than the interest rate decision itself.

“The market is entering the Fed meeting with expectations leaning more towards a ‘hawkish’ stance. I don’t think Chairman Jerome Powell is overly dovish, but he has left the door open for further rate cuts,” said Vassili Serebriakov, FX strategist at UBS New York.

This contrasts sharply with messages from the Governor of the Reserve Bank of Australia and an influential policymaker at the European Central Bank (ECB), both of whom hinted that the next step could be an interest rate hike.

"We've seen a fairly strong hawkish shift in market expectations outside the US, such as in Australia, Canada, and even Europe, and these expectations seem to be further reinforced by statements from the ECB," Serebriakov said.

"Therefore, the issue is not just that the Fed is more dovish than expected, but also the contrast between the Fed and other central banks in the G10 group, where expectations are shifting towards tighter policies," he continued.

The US dollar also faced pressure from data showing the sharpest increase in initial jobless claims in nearly four and a half years. According to the US Department of Labor, state-level jobless claims rose by 44,000, the largest increase since mid-July 2021, to 236,000 in the week ending December 6 (seasonally adjusted).

The US bond market attracted buying interest, pushing yields lower, after the Federal Reserve announced it would begin purchasing short-term government bonds starting December 12th to regulate liquidity, with an initial size of approximately $40 billion. This move is complemented by $15 billion that the Fed will reinvest in Treasury bonds from mortgage-backed securities (MBS) maturing this month.

In total, the $55 billion in liquidity injected by the Fed is seen as a positive factor for market sentiment and risky assets, but detrimental to safe-haven assets like the USD.

Separated from the USD's movements, the Swiss franc continued to strengthen after the SNB kept its policy interest rate unchanged at 0%, and indicated that a recent agreement to reduce US tariffs on Swiss goods had improved the economic outlook, although inflation remained lower than expected.

The euro fell 0.2% against the franc, to 0.9331.

Although the strength of the franc is making it difficult for the SNB to put downward pressure on inflation, SNB President Martin Schlegel reiterated that the threshold for returning to negative interest rates is very high.

In other markets, the Australian dollar came under pressure after data showed employment in the country fell sharply in nine months in November. The currency declined 0.2% to $0.6663.

Source: https://thoibaonganhang.vn/sang-1212-ty-gia-trung-tam-giam-6-dong-175029.html