USD exchange rate today October 24: The greenback moves sideways, waiting for signals from the Fed
USD exchange rate today October 24: Domestically stable, while in the international market the greenback moved sideways as investors waited for the Fed's decision to lower interest rates and US CPI data.
Domestic USD exchange rate remains stable, price difference between banks narrows
On the morning of October 24, the State Bank announced the central USD exchange rate at 25,098 VND, unchanged from October 23. The reference USD exchange rate at the State Bank Transaction Office is currently at 23,894 - 26,302 VND (buy - sell), slightly down from the previous session.
In the free market, the USD exchange rate continued to increase. At 9:00 a.m., the USD was traded at 27,343 VND/USD (buy) and 27,463 VND/USD (sell), up 34 VND/USD in both directions. This development shows that the gap between the free USD exchange rate and the bank rate remains high.
In the banking system, the USD exchange rate fluctuated slightly compared to the previous session.
Vietcombank listed 26,122 - 26,352 VND/USD (buy - sell), down 1 VND in both directions.
BIDV maintains the USD exchange rate at 26,152 - 26,352 VND/USD, down 1 VND.
VietinBank increased 37 VND in buying price (25,970 VND/USD) but decreased 1 VND in selling price, to 26,352 VND/USD.
Agribank slightly reduced, listing the USD exchange rate at 26,190 - 26,352 VND/USD.
Overall, the spread between commercial banks is narrowing, indicating that the foreign exchange market is gradually stabilizing after a period of strong volatility in early October.
International USD exchange rate remains unchanged – investors await US inflation data
In the international market, the USD-Index (DXY), which measures the strength of the greenback against a basket of six major currencies, remained around 99.01 points – almost unchanged from yesterday. Investors remained cautious ahead of the release of the US inflation report and the Fed's monetary policy meeting.
Analysts believe that the USD exchange rate may increase slightly in the short term if the US CPI data for September is higher than expected. According to forecasts, the overall CPI will increase by 0.4% and the core CPI will increase by 0.3% compared to the previous month. These results will provide more basis for the Fed to adjust interest rate policy at the December meeting.
Investors are now almost certain that the Fed will cut interest rates by 25 basis points next week. However, whether the USD exchange rate can maintain its strength depends on the US economic outlook and inflation developments.
According to experts, the greenback is entering a "testing" phase - when bond yields fall and expectations of interest rate cuts increase. If the Fed signals further cuts in December, the USD exchange rate may be under pressure against other strong currencies such as the euro and Japanese yen.
In Asia, the Japanese yen was flat against the dollar after new data showed core consumer prices remained above the Bank of Japan’s 2% target. This kept the USD/JPY pair stable for now, but upward pressure on the dollar remains if the US maintains its monetary policy more slowly than expected.
In addition, the market is also watching the meeting between US President Donald Trump and Chinese President Xi Jinping in South Korea next week. This meeting could directly affect the USD exchange rate, as investors expect a "ceasefire" agreement in trade tensions between the world's two largest economies.
According to Mr. Joseph Capurso, Head of International Economics at CBA, although the Trump-Xi meeting may help calm market sentiment, the possibility of achieving a breakthrough is very low. Therefore, the USD exchange rate is likely to fluctuate within a narrow range.
Experts predict that if the Fed cuts interest rates as planned, the USD exchange rate may weaken in the short term but will recover by the end of the year thanks to investment capital returning to the US when global risks increase.
