USD exchange rate today December 17, 2024: USD drops sharply before Fed meeting

USD exchange rate today in the world

In the US market, the US Dollar Index (DXY), which measures the fluctuations of the USD against 6 major currencies (EUR, JPY, GBP, CAD, SEK, CHF), decreased by 0.15% and is currently at 106.86.

The greenback edged lower against major currencies in a volatile start to the week, as investors awaited interest rate decisions from the US Federal Reserve, the Bank of Japan, the Bank of England and other central banks this week.

The CME FedWatch tool shows that the market is pricing in a nearly 97% chance that the Fed will cut interest rates by 25 basis points at the end of its policy meeting on December 18. The yield on the 10-year US Treasury note fell 0.8 basis point to 4.391%.

Juan Perez, director of trading at Monex USA, said the dollar’s ​​movements depend not only on the Fed’s actions, but also on whether the rate cuts are hawkish. He expects the Fed to cut rates, but the process may be slow.

The dollar rose 0.16 percent against the Swiss franc to 0.8945, hovering near its highest since July. Against the Japanese yen, the dollar rose 0.31 percent to 154.12, after hitting a high of 154.480 for the first time since Nov. 26.

The Japanese yen is struggling to recover from last week's sharp decline, amid speculation that the Bank of Japan could keep interest rates unchanged at its meeting on December 19.

The euro was also little changed during the session, rising 0.07% to $1.0509. A survey showed that business activity in the eurozone contracted this month.

European Central Bank President Christine Lagarde said on December 16 that the ECB could continue to cut interest rates if inflation continues to fall below its 2% target.

The pound rose 0.60 percent to $1.26845, after falling to its lowest since Nov. 27 last week on surprise data showing a recession in Britain.

USD exchange rate today in the country

Domestically, at the beginning of the trading session on December 17, the State Bank announced the central exchange rate of the Vietnamese Dong against the USD increased by 8 VND, to 24,272 VND.

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

According to the +/-5% amplitude of the ceiling and floor exchange rates that commercial banks are allowed to trade, the exchange rate fluctuates between 23,060 - 25,485 VND/USD.

Commercial banks also adjusted the USD exchange rate. Vietcombank listed the USD price at 25,155 - 25,485 VND/USD, up 8 VND each way compared to the previous session.

At VietinBank, the USD buying and selling rate is at 25,180 - 25,485 VND/USD.

Techcombank, a private joint stock commercial bank, listed the USD buying and selling price at 25,138 - 25,485 VND/USD.

In the free market, the USD/VND exchange rate increased sharply this morning, currently at 25,650 - 25,750 VND/USD, up 100 VND each way compared to yesterday's session.

This makes the buying price of USD in the free market 788 VND higher than the exchange rate of banks. The difference in selling price between commercial banks and the free market is at least 265 VND.