USD exchange rate today January 15, 2025: USD drops sharply before CPI data

USD exchange rate today in the world

The dollar weakened on Tuesday but remained near its highest in more than two years as lower-than-expected inflation data following last week’s strong jobs report made it harder to predict the Federal Reserve’s next moves on interest rates.

Data showed US producer prices rose moderately in December. Investors have begun to pare bets on interest rate cuts as tariffs from the administration of US President-elect Donald Trump remain in focus.

The greenback pared gains late in the session as traders cautiously awaited the consumer price index (CPI) report due later today, January 15. Investors have been closely watching the economic data to see if it supports the Fed’s cautious stance on interest rates.

Traders are pricing in the first rate cut to come in September, with the cut being smaller than the 50 basis points the Fed is expected to make in December.

With President-elect Donald Trump set to begin his second term next week, with his policies at the center of the debate, analysts expect growth and price pressures to pick up. The threat of tariffs coupled with expectations of fewer Fed rate cuts has boosted Treasury yields and supported the greenback.

Scott Bessent, Trump's pick for Treasury Secretary, is expected to clamp down on the US deficit and use tariffs as a negotiating tool, minimizing the impact on inflation.

Brad Bechtel, global head of FX at Jefferies, said that while the CPI report is important, the market is focused on Donald Trump and the new administration.

However, Matt Weller, director of market research at StoneX, said that today's CPI will be more important for the central bank as well as traders.

The DXY index fell to 109.25, below a 26-month high of 110.17 hit earlier this week. The index hit 114.78 in October 2022, its highest since 2002.

In contrast, the euro rose 0.51% to $1.0297. It hit $1.0177 earlier in the week, its lowest since November 2022.

The common currency is down more than 6% in 2024 as investors worry about tariff threats and monetary policy divergence between the Fed and the European Central Bank.

Meanwhile, the British pound fell 0.04% to $1.2198, hitting a two-month low against the euro.

The dollar rose 0.26 percent against the Japanese yen to 157.89, as traders prepared for next week's Bank of Japan policy meeting, where markets are pricing in a 57 percent chance of a rate hike.

USD exchange rate today in the country

In the domestic market, at the beginning of the trading session on January 15, the State Bank announced the central exchange rate of the Vietnamese Dong against the USD increased by 3 VND, currently at 24,346 VND.

* The reference exchange rate at the State Bank's transaction office remains unchanged, currently at: 23,400 VND - 25,450 VND.

USD exchange rates at commercial banks are as follows:

* The EUR exchange rate at the State Bank's buying and selling exchange center increased slightly, currently at: 23,697 VND - 26,191 VND.

EUR exchange rates at commercial banks are as follows:

* The Japanese Yen exchange rate at the State Bank's exchange office remains unchanged, currently at: 146 VND - 162 VND.