USD exchange rate today, December 31st: The greenback recovers to 98.22 points.

The global foreign exchange market saw a recovery in the US dollar during the year-end trading session after the Federal Reserve (Fed) released the minutes of its December meeting. In Vietnam, the State Bank of Vietnam slightly adjusted the central exchange rate downwards amidst low market liquidity at the end of the year.

Global markets: USD rises after signals from the Fed.

In the US market, the US Dollar Index (DXY) – a measure of the strength of the USD against a basket of six major currencies – rose 0.18%, to 98.22 points. This increase occurred as investors processed information from the Fed meeting minutes, showing that policymakers are being more cautious about the path of monetary easing.

According to the minutes, the Fed currently only expects to implement one interest rate cut next year and leaves open the possibility of maintaining current interest rates until inflation shows clearer signs of slowing down. Joseph Trevisani, an expert at FX Street, believes that the lack of clarity in the Fed's policy direction is directly impacting the performance of the US dollar and US Treasury yields.

Despite a short-term recovery, the US dollar is heading for its worst performance since 2017, with a potential decline of nearly 10%, across the board. Among major currencies, the euro fell 0.18% to $1.1751; the British pound declined 0.3% to $1.3467; and the Japanese yen retreated to 156.39 yen/USD.

Notably, the Chinese yuan (CNY) surpassed a key psychological threshold, reaching 6.987 CNY/USD. This is the currency's strongest level since May 2023, despite signals of easing monetary policy from the central bank.

Domestic market: Vietcombank lists the exchange rate at 26,380 VND/USD.

Early morning on December 31st, the State Bank of Vietnam announced the central exchange rate of the Vietnamese Dong against the US Dollar at 25,124 VND, a decrease of 1 dong compared to the previous trading session. At the State Bank of Vietnam's exchange floor, the buying and selling rates were listed at 23,918 - 26,330 VND.

At commercial banks, the USD exchange rate remained stable on the selling side.

For other foreign currencies, the EUR exchange rate at Vietcombank is listed at 30,143 – 31,732 VND (buy – sell). The Japanese Yen (JPY) exchange rate is trading in the range of 162.32 – 172.64 VND. Domestic exchange rate fluctuations in the last days of the year are considered quite stable despite the continued pressure from the international market.