USD exchange rate today December 20, 2024: USD continues to maintain its upward momentum above the 108 mark

USD exchange rate today in the world

In the US market, the US Dollar Index (DXY), which represents the strength of the USD compared to a basket of six major currencies (including EUR, JPY, GBP, CAD, SEK, and CHF), increased by 0.37% to reach 108.40. The greenback is maintaining its high level in the past two years thanks to the policy moves of the US Federal Reserve (Fed).

In the recent trading session, the USD increased slightly when the Fed announced a rate cut and adopted a more cautious strategy in adjusting monetary policy until 2025. In contrast, the Japanese Yen weakened after the Bank of Japan decided to leave interest rates unchanged.

Third-quarter U.S. economic data showed GDP grew at an annual rate of 3.3%, beating forecasts, helping the dollar recover from an early decline. The positive news has prompted the Fed to consider more carefully before continuing to loosen monetary policy.

Last week, US labor data also showed an unexpected decline, with the number of unemployment claims falling to 220,000. The Fed's decision pushed bond yields higher, causing other currencies around the world to fall sharply on December 18.

The DXY index hit a high of 108.48, surpassing the previous session's peak of 108.18, which was the highest since November 2022. This week saw the last series of policy meetings of 2024 by major central banks.

The Bank of Japan kept interest rates at current levels, sending the yen sharply lower as Governor Kazuo Ueda made no significant moves at a press conference. The dollar rose 1.63% against the yen to 157.55 – its highest since July.

“The current monetary policies are all favorable for the dollar,” said Vassili Serebriakov, a foreign exchange strategist at UBS in New York. “The Fed is aggressive, while the Bank of Japan remains dovish, creating a big boost for the greenback.”

The euro fell sharply by 1.34% on December 18, but then recovered slightly by 0.16% to $1.036650. The Bank of England, in its meeting on December 19, also decided to keep interest rates unchanged at 4.75%. The pound fell by 0.58% to just $1.25.

The Canadian dollar hit a four-year low, while the South Korean won fell to a 15-year low. Fed Chairman Jerome Powell stressed that further rate cuts would depend on progress in controlling inflation.

In contrast, the currencies of Sweden and Norway recovered slightly. Sweden's central bank, Riksbank, cut interest rates, while Norway's Norges Bank decided to maintain current interest rates.

USD exchange rate in the country today

The reference exchange rate of USD at the State Bank Exchange is currently at 23,400 VND for buying and 25,450 VND for selling.

The Japanese Yen here also recorded a slight decrease, with the buying and selling rates fluctuating between 149 and 165 VND, down 1 VND compared to before.

Similarly, the EUR exchange rate also decreased, currently the buying and selling rates are listed at 23,953 and 26,475 VND respectively.

On December 20, domestic commercial banks updated foreign exchange rates, reflecting a clear change in the international context.