USD exchange rate today December 18, 2024: USD increases with expectations of Fed rate cut

USD exchange rate today in the world

In the US market, the US Dollar Index (DXY), which reflects the change of the USD compared to 6 major currencies (EUR, JPY, GBP, CAD, SEK, CHF), increased by 0.10% to 106.94. The greenback strengthened in the recent trading session after better-than-expected retail sales figures were released, while the market prepared for interest rate decisions from the Federal Reserve and other central banks.

According to a report from the US Department of Commerce on December 17, US retail sales in November exceeded forecasts, rising 0.7%, thanks to an increase in auto purchases and online transactions. Investors are now waiting for the Fed's decision on whether to cut interest rates. According to the CME FedWatch tool, the market is betting on a 97% chance that the Fed will cut interest rates by 25 basis points at its policy meeting on December 18.

Juan Perez, director of trading at Monex USA, said the dollar’s ​​move will depend not only on the Fed’s decision but also on whether the central bank will adjust interest rates in a tightening direction. He said that while the possibility of the Fed cutting interest rates is high, the process could be slow.

Against the Swiss franc, the dollar fell 0.2% to 0.89270, after rising sharply to its highest level since July. The euro, which is down nearly 5% against the dollar this year, also fell 0.24% to $1.048825 in recent trading. The DXY index hit a session high of 107.08, before ending 0.10% higher at 106.94.

The Japanese yen rose against the dollar as expectations eased that the Bank of Japan would raise interest rates at its policy meeting on December 19. The yen rose 0.42 percent to 153.52 yen per dollar. Meanwhile, the pound also gained after data showed wage growth in the UK rose more than expected in the three months to October. The Bank of England will make its interest rate decision on December 19, and the pound rose 0.16 percent to $1.27040.

Meanwhile, the AUD fell 0.6% against the USD to 0.6332. The Swedish central bank is expected to cut interest rates by 50 basis points this week, while the Norwegian central bank is expected to keep rates unchanged.

USD exchange rate today in the country

Regarding domestic exchange rates, the State Bank listed the central rate at 24,270 VND/USD, down 2 VND from the previous day. Commercial banks can trade within the range of 23,058 - 25,483 VND/USD according to the +/-5% margin of the ceiling and floor rates.

At commercial banks, the reference exchange rates are listed as follows: Vietcombank is at 25,153 - 25,483 VND/USD, down 2 VND each way compared to the previous session. VietinBank recorded 25,180 - 25,483 VND/USD, while Techcombank has a buying rate of 25,175 VND/USD and a selling rate of 25,483 VND/USD.

In the free market, the USD/VND exchange rate this morning fluctuated between 25,625 - 25,725 VND/USD, down 25 VND each way compared to yesterday. The difference between the buying price in the free market and the bank is currently up to 472 VND, while the difference between the selling price is at least 242 VND.