USD exchange rate today August 28, 2024: Domestic USD drops sharply

USD exchange rate today in the world

The US Dollar Index (DXY), which measures the US dollar's performance against six major currencies, edged down 0.30% to 100.55.

The recent decline in the US dollar in the currency market may be linked to expectations that the US Federal Reserve (Fed) will cut interest rates in the near future.

Investors believe the Fed will cut interest rates at its September meeting, with some debate over whether the cut will be 50 or 25 basis points.

The market is pricing in a 37% chance that the Fed will cut rates by another 50 basis points, with a total of around 106 basis points likely to be cut in 2024.

Eugene Epstein from Moneycorp commented that the US dollar has weakened significantly after the Fed's Jackson Hole Conference, and Fed Chairman Jerome Powell's remarks reflected a less hawkish stance on monetary policy.

The DXY index rose to 100.53, marking its highest level since July last year. The dollar fell 3.2% in August, which could be the biggest monthly decline since November 2022.

US home prices edged down 0.1% on the month, after being unchanged in May. In the 12 months through June, home prices rose 5.1%, the lowest annual gain since July 2023.

US consumer confidence improved in August, with the confidence index rising from 101.9 to 103.3. However, the market did not react much to this news.

Investors are awaiting new reports on second-quarter GDP, unemployment figures and the PCE index - a key measure of inflation that the Fed closely watches.

The British pound rose to its highest level against the US dollar (USD) in recent trading. In contrast, the US dollar fell to its lowest level in more than a year after rising in the previous session.

The pound's rise was supported by a weaker US dollar, which hit its highest since March 2022 at $1.3246 and was up 0.3% at $1.3226.

Chairman Powell's comments about a rate cut next month and cautious comments from Bank of England Governor Andrew Bailey also contributed to the pound's rise.

The euro (EUR) also rose slightly by 0.2% against the US dollar to $1.1181, close to a 13-month high. The EUR/USD index is likely to stabilize after a strong rally since early August, according to Chris Turner, global head of markets at ING.

USD exchange rate today in the country

The State Bank announced the central exchange rate VND/USD decreased by 30 VND, down to 24,224 VND.

The reference USD exchange rate is listed between 23,400 and 25,450 VND/USD, unchanged from the previous session.

The USD exchange rate today (August 28) dropped sharply on the free market, no longer maintaining at 25,000 VND/USD. On the free market in Hanoi, the USD was traded at 25,093 - 25,173 VND/USD, down about 90 VND/USD.

In nearly a month, since July 29, the USD on the free market has decreased by 547 VND, from 25,720 VND/USD. Commercial banks have reduced the buying and selling prices of USD, Vietcombank listed it at 24,630 - 25,000 VND/USD.

BIDV and Vietinbank also reduced the USD price, with BIDV at 24,655 - 24,995 VND/USD and Vietinbank at 24,540 - 24,990 VND/USD.

Eximbank listed the USD price at 24,630 - 24,990 VND/USD, down 30 VND/USD compared to the previous session.