USD exchange rate today September 1: Domestic USD slightly increased

World USD exchange rate last week

The USD Index (DXY), which measures the greenback's movements against six major currencies, rose 1.01% this week to 101.73.

The dollar rose slightly by 0.14% to 100.86 at the start of the week, its highest level in eight months. This increase increased expectations of a US interest rate cut in September, possibly by 25 or 50 basis points.

DXY Index volatility chart over the past week. Photo: Marketwatch

The dollar fell 0.30% to 100.55 on August 28 as investors awaited fresh economic data. Currency markets were volatile on expectations of a US interest rate cut, putting pressure on the dollar. US home prices fell slightly by 0.1% month-on-month in June, after remaining unchanged in May.

The US dollar rose slightly by 0.28% to 101.27 on August 30 after data showed the US economy grew faster than expected in the second quarter, reducing expectations for a deeper interest rate cut from the Federal Reserve next month.

Specifically, data released on August 29 showed that US gross domestic product (GDP) increased 3% annually in the second quarter, higher than the 2.8% estimate last month and significantly up from the 1.4% in the first quarter.

Analysts said the report raised hopes that the US could avoid a recession or face only a mild one.

The US dollar continued to rise 0.39% to 101.73 on August 31. This increase was supported by growth in personal spending and income, raising expectations that the Fed may only cut interest rates by 25 basis points next month instead of 50 basis points.

Some investors still expect a bigger rate cut from the Fed next month, arguing that the Fed needs to move quickly to ease monetary policy further.

Markets are pricing in a 31% chance the Fed will cut rates by 50 basis points next month, down from 35% a day earlier. At the same time, there is a near certainty that the Fed will cut rates by 25 basis points at its September meeting, the first time in more than four years that they have not changed.

The market also predicts that the Fed will likely cut interest rates by a total of about 100 basis points by the end of 2024.

Domestic USD exchange rate today

The central exchange rate between Vietnamese Dong (VND) and US Dollar (USD) today, September 1, increased by 210 VND, currently at 25,030 VND.

Commercial banks can currently trade in the range of 23,400 to 25,450 VND/USD.

The State Bank Exchange also applies this price for buying and selling USD.

The USD exchange rate at banks this morning remained unchanged. Vietcombank is buying USD at 24,660 and selling at 25,030, unchanged from August 31.

The current buying and selling price of USD in the market fluctuates between 24,000 and 25,500 VND/USD.