Foreign exchange rates on December 28th: USD slightly decreases, DXY retreats to 98.05.
The DXY index fell 0.38% in the final trading week of the year as expectations of Fed easing policy increased. Domestically, the central exchange rate for the USD remained at 25,128 VND.
In the early hours of December 28th, the foreign exchange market saw a slight decline in the US Dollar Index (DXY) as it entered the final trading days of the year. In the domestic market, the State Bank of Vietnam maintained the stability of the central exchange rate, reflecting the widespread tug-of-war between the US dollar and other currencies.
International markets: The US dollar is under downward pressure.
The US Dollar Index (DXY), a measure of the dollar's strength against a basket of six major currencies, fell 0.38% from the end of last week, currently standing at 98.05 points. This weakening trend is mainly due to the market adjusting its expectations regarding the monetary policy path of the US Federal Reserve (Fed).
Market liquidity decreased sharply due to the year-end holiday season, resulting in narrow price fluctuations. Although the US economy continues to grow, indicators of consumption and inflation continue to cool, reinforcing the view that the Fed has completed its tightening cycle and may be closer to cutting interest rates next year. This has led to a slight decrease in US Treasury yields, reducing the attractiveness of the US dollar.
The divergence in global monetary policy, with some major central banks maintaining hawkish stances, has led to a tendency for capital to shift away from the USD. However, defensive sentiment regarding geopolitical risks remains a supporting factor, helping the currency avoid a sharp decline.
Domestic foreign exchange rates on December 28th
In the domestic market, the State Bank of Vietnam announced the central exchange rate of the Vietnamese Dong against the US Dollar at 25,128 VND/USD. At the State Bank of Vietnam's exchange floor, the buying price is listed at 23,922 VND and the selling price is 26,334 VND.
Fluctuations at commercial banks
Below is the exchange rate trend for common foreign currencies at Vietnam's commercial banking system:
For the US dollar:Banks maintain stable trading margins, closely following developments in international markets.
For the EUR:The EUR exchange rate at the State Bank of Vietnam's exchange remained unchanged at 28,129 VND - 31,090 VND for buying and selling.
For the Japanese Yen (JPY):The reference exchange rate at the State Bank of Vietnam's exchange floor is currently listed at 153 VND for buying and 169 VND for selling.
Experts predict that, in the absence of significant economic data in the final week of the year, exchange rates are likely to remain stable until the start of the new fiscal year.
