After a week of exciting trading and far exceeding the 24,000 VND/USD mark (at one point almost touching 24,200 VND/USD), the USD/VND exchange rate suddenly turned around and "free-fall" and lost the important daily mark.
At the end of the afternoon session on August 18, Vietnam Joint Stock Commercial Bank for Industry and Trade ( VietinBank ) listed the USD price at: 23,630 VND/USD - 23,970 VND/USD, down 10 VND/USD for buying and down 90 VND/USD for buying. The 24,000 VND/USD mark has been broken.
At the Joint Stock Commercial Bank for Foreign Trade of Vietnam ( Vietcombank ), the exchange rate is also traded at: 23,630 VND/USD - 23,970 VND/USD, down 70 VND/USD in both buying and selling directions compared to the end of yesterday.
The USD/VND exchange rate suddenly “fell freely” and lost the 24,000 VND/USD mark on the banking system during the weekend trading session. Illustrative photo
The USD at the Vietnam Export Import Commercial Joint Stock Bank (Eximbank) also moved away from the 24,000 VND/USD mark. The exchange rate is being bought and sold at: 23,630 VND/USD – 23,940 VND/USD, down 90 VND/USD.
However, the 24,000 VND/USD mark is still maintained at some units.
Orient Commercial Joint Stock Bank ( OCB ) still listed the USD/VND exchange rate at 23,619 VND/USD - 24,034 VND/USD, down 20 VND/USD for buying and 79 VND/USD for selling.
This price applies to cash transactions. If you transfer money, the exchange rate will vary: 23,669 VND - 23,924 VND/USD, down 74 VND/USD for buying and down 89 VND/USD for selling.
The USD/VND exchange rate is "free falling" even though the USD is still getting stronger in the world market.
Meanwhile, in the European market, the dollar is heading for a fifth consecutive week of gains against major currencies, its longest streak in 15 months, as the US economy is “conservative” about high interest rates for longer while difficulties have returned to China.
The US dollar index - which measures the currency against six developed market rivals, including the yen and euro - fell 0.14% to 103.26 in Asian morning trade, after hitting a two-month high of 103.59 overnight.
“The market wants the Fed to continue to hold off, but the data doesn’t support that,” said Tony Sycamore, market analyst at IG. “Risk aversion, higher yields, solid economic data… all of that has created a perfect environment for the dollar.”
Some profit-taking from the dollar's rally could occur over the weekend, but a break above 103.70 is likely next week, opening the way for tests of the May high at 104.70 and then 105.88, Sycamore added.
Last fall, the dollar's surge above 145 triggered the first yen-buying intervention from Japanese authorities in a generation.
The euro rose 0.2% to $1.0892, recovering from Thursday's six-week low of $1.08565.
Against the yuan, the dollar fell 0.11% to 7.2895 in offshore trade, with the Chinese currency getting support from the central bank setting its official midpoint at 7.2006, 1,000 pips higher than a Reuters estimate.
The Chinese currency fell to a nine-month low of 7.3490 on Thursday in offshore markets.
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