USD dominates thanks to Fed, Japanese Yen suffers the biggest loss

Foreign exchange rates, USD/VND exchange rate today January 1, 2025 recorded the USD reaching its highest level in two years when the prospect of the US Federal Reserve (Fed) keeping interest rates higher than other banks.

Foreign exchange rate update table - USD exchange rate Agribank today

1. Agribank - Updated: 01/01/2025 10:00 - Time of website supply source
Foreign currency		Buy		Sell
Name	Code	Cash	Transfer
USD	USD	25,280	25,291	25,551
EUR	EUR	25,956	26,060	27,158
GBP	GBP	31,327	31,453	32,415
HKD	HKD	3,214	3,227	3,331
CHF	CHF	27,649	27,760	28,614
JPY	JPY	158.70	159.34	166.18
AUD	AUD	15,511	15,573	16,077
SGD	SGD	18,397	18,471	18,982
THB	THB	724	727	758
CAD	CAD	17,413	17,483	17,978
NZD	NZD		14,110	14,596
KRW	KRW		16.54	18.21

Exchange rate developments in the domestic market

In the domestic market, according to TG&VN at 9:00 a.m. on January 1, the State Bank announced the central exchange rate of the Vietnamese Dong to the USD at 24,335 VND, an increase of 8 VND.

The reference USD exchange rate at the State Bank of Vietnam is listed at: 23,400 VND - 25,450 VND.

USD exchange rates at commercial banks are as follows:

Vietcombank : 25,221 - 25,551 VND.

Vietinbank : 25,230 - 25,551 VND.

Foreign exchange rates, USD/VND exchange rate today January 1, 2025: USD dominates thanks to Fed, Japanese Yen suffers the biggest loss. (Source: CNBC)

Exchange rate developments in the world market

The US Dollar Index (DXY) measuring the greenback's movements against six major currencies (EUR, JPY, GBP, CAD, SEK, CHF) increased by 0.35%, currently at 108.48.

The dollar hit a two-year high as the prospect of the Fed keeping interest rates higher than others gave the US currency an upper hand.

Traders have been pricing in the Fed taking a slow and cautious approach to further rate cuts this year, as inflation remains above the Fed's 2% annual target.

Analysts also expect that policies put forward by US President-elect Donald Trump, including business deregulation, tax cuts, tariffs and a crackdown on illegal immigration, will boost growth and add further price pressure by 2025.

That sent US Treasury yields higher and increased demand for the greenback.

The DXY index closed up 0.35% on the day at 108.48, having earlier hit 108.58 during the session, its highest since November 2022.

The currency is on track for an annual gain of more than 7%.

Growth prospects in other countries, coupled with ongoing geopolitical tensions in the Middle East, have boosted demand for the greenback this year.

The Japanese yen is among the biggest losers this year and is on track for a fourth year of declines against the greenback, hurt by the wide interest rate differential between Japan and the US.

Analysts expect the Japanese currency to be supported by further easing by the Fed and a rate hike by the Bank of Japan.

Until then, traders are watching for intervention from Japanese authorities, after they have intervened to support the currency several times this year.

The greenback gained 0.29% against the Japanese yen in the last trading session, currently at 157.28 yen and on track for an 11.5% annual gain.

In contrast, the euro fell 0.52% to $1.0353 and is on track for a 6.2% annual decline, as traders expect the European Central Bank to cut interest rates more aggressively than the Fed.

Meanwhile, the pound weakened 0.34% to $1.2508 and is on track to fall 1.6% by 2024, the steepest decline of any major currency against the dollar this year.

Source: https://baoquocte.vn/ty-gia-ngoai-te-ty-gia-usdvnd-hom-nay-112025-usd-chiem-uu-the-nho-fed-yen-nhat-thua-lo-lon-nhat-299254.html