USD exchange rate today, December 18th: The US dollar reverses course and rises.
The DXY index rose 0.26% to 98.40 points, while the British pound weakened due to falling inflation. In Vietnam, the State Bank adjusted the central exchange rate upwards to 25,146 dong.
As of the early morning of December 18th, the US dollar reversed its downward trend and rose in the international market. The US Dollar Index (DXY), which measures the strength of the greenback against six major currencies (EUR, JPY, GBP, CAD, SEK, CHF), increased by 0.26% to 98.40 points.
Domestically, the State Bank of Vietnam also announced an upward adjustment of 5 dong to the central exchange rate of the Vietnamese dong against the US dollar, to 25,146 dong.
International market developments
The recovery of the US dollar is occurring as investors await key policy decisions from several major central banks and assess conflicting statements from Federal Reserve officials.
The British pound is under downward pressure.
The British pound (GBP) saw significant weakening after UK inflation data came in lower than expected. Specifically, inflation in November fell to 3.2%, the lowest level since March. This figure reinforced expectations that the Bank of England (BoE) would soon cut interest rates.
During the trading session, the British pound fell 0.34% to $1.33749, retreating from its earlier two-month high. Futures markets are now pricing in a near 100% probability of a 0.25 percentage point interest rate cut from the Bank of England.
Mixed signals from the Fed
Federal Reserve Governor Christopher Waller said the U.S. central bank still has room to cut interest rates amid signs of a weakening labor market. However, this view contradicts that of Atlanta Fed President Raphael Bostic, who believes interest rate cuts are not yet necessary and does not anticipate any reductions in 2026.
According to Vassili Serebriakov, a foreign exchange strategist at UBS, the market remains skeptical about the Fed's ability to cut interest rates as early as January, which has supported the recovery of the US dollar.
Other major currencies
Markets are focusing on the monetary policy meetings of the Bank of England (BoE) and the European Central Bank (ECB) on Thursday, along with the Bank of Japan (BoJ) on Friday. The BoJ is expected to raise interest rates to their highest level in three decades.
Ahead of the Bank of Japan (BoJ) meeting, the US dollar rose 0.6% against the Japanese yen to 155.625 JPY. Meanwhile, the euro (EUR) remained nearly unchanged at $1.174375, after hitting a 12-week high earlier, amid unexpectedly weak business sentiment in Germany in December.
Domestic foreign exchange rates
In the Vietnamese market, the State Bank of Vietnam announced the central exchange rate applicable for December 18th as 25,146 VND/USD, an increase of 5 dong compared to the previous session.
Exchange rates at the State Bank of Vietnam's exchange floor.
- USD exchange rate:Buying price: 23,939 VND - Selling price: 26,353 VND.
- EUR exchange rate:Buying price: 28,070 VND - Selling price: 31,025 VND.
- Japanese Yen exchange rate:Buying price: 154 dong - Selling price: 171 dong.
Exchange rates at commercial banks
The USD exchange rates at some commercial banks are listed as follows:
The EUR exchange rates at some commercial banks are listed as follows:
The Japanese Yen exchange rates at some commercial banks are listed as follows:
