USD exchange rate today September 17, 2024: Sharp decrease before the meeting
USD exchange rate today September 17, 2024: The State Bank announced the central exchange rate of the Vietnamese Dong to the USD down 35 VND. The US Dollar Index (DXY) decreased by 0.41%
USD exchange rate today in the world
Today, the DXY index, which measures the strength of the US dollar against a basket of international currencies including EUR, JPY, GBP, CAD, SEK and CHF, saw a slight decline of 0.41% to 100.71 points.
The US dollar fell sharply against the Japanese yen, hitting its lowest level in more than a year, reflecting market expectations of a significant interest rate cut from the US Federal Reserve this week.
The US central bank, the FED, is expected to announce a rate cut of at least 25 basis points after its policy meeting on September 18.
However, recent reports from the Wall Street Journal and the Financial Times have fueled speculation among traders that the Fed could consider a deeper rate cut of as much as 50 basis points, raising market expectations for a larger cut to 61%, up from just 15% last week.
In the recent trading session, the USD value fell, reaching its lowest level against the Japanese Yen since July 2023, reaching 139.58 yen. At the end of the session, the USD weakened slightly, losing 0.10%, closing at 140.690 yen.
US Treasury yields fell ahead of the Federal Reserve meeting, with expectations of a 50 basis point rate cut rising.
The yield on the 10-year bond has fallen 30 basis points in two weeks, while the yield on the two-year bond has fallen 2.5 basis points to 3.5509%.
Investors are keeping an eye on the Bank of Japan’s (BOJ) upcoming interest rate decision, which is expected to keep its short-term policy rate target unchanged at 0.25% on September 20.
BOJ board members expressed a desire for higher interest rates, and the falling spread between Japanese interest rates and other major currencies contributed to a rise in the value of the yen, leading to the cancellation of billions of dollars worth of interest rate carry trades.
The British pound saw a 0.64% gain to $1.3206.
The Euro also edged up 0.42%, with the current price at $1.1123.
The European Central Bank recently cut interest rates by 0.25%, and while there were expectations of further reductions in borrowing costs, ECB President Christine Lagarde has tempered those expectations. The ECB is not expected to cut rates again until December, ECB Governing Council member Peter Kazimir said on September 16.
The Bank of England is expected to keep its base rate at 5% on September 19, following its decision to cut rates by 0.25% in August. Futures markets are now pricing in a 35.9% chance of a further 0.25% cut on September 19, up from 20% at the end of last week.
USD exchange rate today in the country
On September 17, the State Bank of Vietnam announced the central exchange rate of VND/USD at 24,137 VND, down 35 VND compared to the previous rate.
The reference USD exchange rate listed by the State Bank of Vietnam is at 23,400 to 25,293 VND/USD for buying and selling, unchanged in the buying direction and down 157 VND in the selling direction.
In the free market, the USD exchange rate this morning decreased significantly, with the transaction rate in Hanoi at 6:35 am being 24,769 to 24,899 VND/USD, down 157 VND for buying and 127 VND for selling compared to the previous day.
Vietcombank has adjusted the USD exchange rate, with the buying and selling rates at 24,350 to 24,720 VND/USD, down 10 VND for both directions compared to the previous session.
BIDV listed the USD buying and selling rates at 24,380 to 24,720 VND/USD, a slight increase of 5 VND for both directions compared to the previous session.
Vietinbank and Eximbank kept the buying rate unchanged and increased the USD selling rate by 20 VND, with Vietinbank at 24,220 to 24,720 VND/USD and Eximbank at 24,360 to 24,720 VND/USD compared to the previous trading session.