USD exchange rate today September 6, 2024: Sharp drop before Fed cuts interest rates
USD exchange rate today 9/6/2024: The Dollar Index (DXY) is at 101.06 points, down 0.21 points from yesterday. Investors' bets are now changing as the Dollar weakens with the Fed about to cut interest rates.
World USD exchange rate on September 6, 2024
The Dollar Index, which measures the greenback's value against six other major currencies, edged down to 101.06.
The US dollar weakened against major currencies in recent trading, ahead of the release of the US jobs report, which could influence the Fed's interest rate decision.
The slowdown in economic growth has increased the likelihood that the Fed will cut interest rates more aggressively.
Fed Chairman Jerome Powell has signaled an upcoming interest rate cut to ease concerns about the labor market.
The number of new unemployment claims in the US fell, suggesting layoffs are not increasing.
The latest data do not point to a recession, although private job growth in the US slowed.
Economists predict 165,000 new jobs will be added in the US in August.
The market is torn between whether the Fed will cut rates by 25 or 50 basis points at its upcoming meeting. There is a 59% chance of a 25 basis point cut and a 41% chance of a 50 basis point cut by mid-September.
The market predicts the Fed could cut interest rates a total of 100 basis points this year.
Domestic USD exchange rate on September 6, 2024
Early on the morning of September 6, 2024, the State Bank announced a reduction in the central exchange rate between the Vietnamese Dong and the US dollar to 24,222 VND/USD, a decrease of 7 VND compared to before.
Commercial banks can currently trade USD in the range of 23,400 to 25,450 VND/USD.
The USD exchange rate at Vietcombank today decreased by 15 VND, down to 24,550 VND for buying and 24,920 VND for selling, down 95 VND compared to yesterday.
Expectations that the US Federal Reserve could cut interest rates have slowed the US dollar's rise, potentially ending a multi-year bull run.
Domestic USD buying and selling prices this morning were recorded to have decreased at banks, with prices ranging from 24,000 to 25,500 VND/USD.