USD exchange rate today November 16, 2024: USD cools down, still anchored above 106

USD exchange rate today in the world

In the US market, the US Dollar Index (DXY), which measures the USD's fluctuations against six major currencies, fell 0.18% to 106.67. Despite the recent decline, the USD still had its biggest weekly gain in more than a month.

The reason is that the market has adjusted expectations that the US Federal Reserve will cut interest rates. President-elect Donald Trump's policies, such as tariffs and tax cuts, could cause inflation and force the Fed to keep interest rates higher.

The dollar has benefited from this expectation. Fed Chairman Jerome Powell said on November 14 that the US central bank is in no rush to cut interest rates. This increased traders' confidence that the Fed will keep interest rates steady.

The US dollar also recorded a strong gain against the Japanese yen, reaching above 156 yen, for the first time since July. The Japanese yen ended the session down 1.4%, to 154.145 yen/USD.

In contrast, the euro is on track for its second consecutive weekly decline, falling to its lowest level since October 2023. The EUR ended the session at $1.054025.

US retail sales rose slightly more than expected in October, but consumer spending showed signs of slowing in the fourth quarter, according to data released by the US Department of Commerce on November 15.

Boston Fed President Susan Collins said on November 15 that a rate cut could be paused after the December meeting, depending on jobs and inflation data. The probability of a December rate cut has dropped to about 61%.

The pound is on track for its biggest weekly loss since January 2023, falling about 2.4%. The pound ended the session down 0.38% to $1.2620. Despite data showing the UK economy contracted in September and growth slowed in the third quarter, the pound showed little reaction to the news.

USD exchange rate today in the country

The central exchange rate announced by the State Bank at the beginning of the week was 24,298 VND/USD, an increase of 8 VND compared to yesterday morning.

According to regulations, commercial banks can trade within a range from 23,083 VND/USD (floor rate) to 25,512 VND/USD (ceiling rate).

The current reference exchange rate at the State Bank of Vietnam is 23,400 VND/USD (buy) and 25,450 VND/USD (sell).

At commercial banks, such as Vietcombank, the listed USD exchange rate is 25,160 VND (buy) and 25,512 VND (sell), up 6 VND and 8 VND compared to yesterday morning.

At VietinBank, the USD exchange rate is 25,190 VND (buy) and 25,512 VND (sell).

At Techcombank, the USD exchange rate is 25,135 VND (buy) and 25,512 VND (sell). At Eximbank, the exchange rate is 25,170 VND (buy) and 25,512 VND (sell).

On the free market, the USD exchange rate this morning is 25,600 VND (buy) and 25,709 VND (sell), down 20 VND for buying and 11 VND for selling compared to yesterday morning.

Currently, the buying price of USD in the free market is 465 VND higher than that in banks. Meanwhile, the selling price at commercial banks is at least 197 VND higher than the free market.

Responding to questions before the National Assembly on November 11, State Bank Governor Nguyen Thi Hong said that since 2016, the State Bank has applied many measures to control inflation and stabilize the value of VND. Along with that, the State Bank has managed interest rates and exchange rates to make holding VND more attractive, such as bringing USD interest rates to 0% and restricting businesses from buying foreign currency when there is no need.

The State Bank also operates the central exchange rate with daily fluctuations, aiming to reduce speculation and dollarization of the economy. Credit institutions will buy USD from people and businesses to convert into VND.

Governor Nguyen Thi Hong affirmed that Vietnam's policy is to fight against "goldenization" and limit "dollarization". Therefore, the 0% foreign currency deposit interest rate policy will encourage people and businesses to sell USD to banks and convert to VND to invest in production and business.