Exchange rates on June 2nd: USD boosted by stablecoins.

On the morning of June 2nd, the USD exchange rate at commercial banks remained stable around the permitted ceiling. In the international market, the greenback was supported by expectations that the Fed would maintain high interest rates for longer and the strong growth trend of USD-pegged stablecoins.

This morning, the State Bank of Vietnam announced the central exchange rate at 25,138 VND/USD, a decrease of 1 VND compared to the previous session. With a 5% trading band, commercial banks are allowed to quote exchange rates within the range of 23,881 - 26,395 VND/USD.
Reference exchange rates between the Vietnamese Dong and various foreign currencies at the Department of Foreign Exchange Management:

Surveys at commercial banks show that the USD price continues to remain stable and close to the permitted ceiling.

Specifically, Vietcombank listed the USD at 26,084 - 26,394 VND/USD (buy - sell), a decrease of 1 VND in both directions compared to the previous session. BIDV traded at 25,114 - 26,394 VND/USD, a decrease of 11 VND in the buying rate and a decrease of 1 VND in the selling rate.

At Techcombank, the USD exchange rate was listed at 26,052 - 26,394 VND/USD, an increase of 16 VND in the buying rate and a decrease of 1 VND in the selling rate. Meanwhile,ACB announced an exchange rate of 26,110 - 26,394 VND/USD, an increase of 30 VND in the buying rate and a decrease of 1 VND in the selling rate compared to the previous trading session.

In the free market, the USD is trading around 26,400 VND/USD for buying and 26,450 VND/USD for selling, unchanged from the end of last week.

The exchange rates for other major foreign currencies in the international payment basket at Vietcombank are listed as follows:

On the international market, the USD Index (DXY) fluctuated around 98.96 points. The US dollar fluctuated within a narrow range as investors assessed the impact of geopolitical tensions in the Middle East and emerging inflation risks. The USD Index (DXY) hovered around 99 points, up 0.1% after a week of decline.

The market's focus this week is the US non-farm payrolls report, released on June 6th, a key indicator for shaping expectations regarding the Fed's interest rate trajectory in the coming months.

Besides short-term factors, the US dollar is also receiving support from the strong growth trend of stablecoins. Speaking at a conference in Seoul, Isabel Schnabel, a member of the European Central Bank (ECB) Executive Board, stated that the rise of USD-pegged stablecoins could further strengthen the greenback's dominant position in the global financial system.

According to Schnabel, the majority of stablecoins currently available are pegged to the US dollar. If the rate of issuance continues to accelerate, the declining international role of the US dollar over the past two decades could slow down or even reverse.

Data from the International Monetary Fund (IMF) shows that the share of the US dollar in global foreign exchange reserves has fallen from around 70% in the early 2000s to below 57% last year. However, the development of stablecoins could create new momentum to help the greenback maintain its influence globally.

Ms. Schnabel also warned that the increasing popularity of USD-pegged stablecoins could undermine the effectiveness of monetary policy in some countries and, in the long term, could diminish the role of the euro in the international financial system and emerging digital financial models.

Source: https://hanoimoi.vn/ty-gia-ngay-2-6-usd-duoc-tiep-suc-tu-stablecoin-1021158.html