USD exchange rate today August 4: Deep drop to 103
The USD exchange rate today, August 4, updated by the State Bank last week decreased by 7 VND, reaching 24,242 VND. The USD Index (DXY), measuring the greenback's fluctuations against 6 major currencies, decreased by 1.05% this week, to 103.22.
Domestic USD exchange rate today
In the domestic market, at the beginning of the trading session on August 4, the State Bank announced the central exchange rate of the Vietnamese Dong against the USD decreased by 7 VND this week, currently at 24,242 VND.
* The reference exchange rate at the State Bank's buying and selling exchange center remains unchanged, currently at: 23,400 VND - 25,450 VND.
USD exchange rates at commercial banks for buying and selling are as follows:
| USD exchange rate | Buy | Sell out |
| Vietcombank | 25,010 VND | 25,380 VND |
| Vietinbank | 24,940 VND | 25,390 VND |
| BIDV | 25,060 VND | 25,400 VND |
USD exchange rate in the world last week
The USD saw a slight gain of 0.25% at 104.57 at the start of the week, reflecting the market's anticipation of upcoming key events such as interest rate decisions from the Fed, BOJ and Bank of England.
Investors are speculating that Fed Chairman Jerome Powell could use the Jackson Hole meeting in late August to signal a possible rate cut, based on new inflation data and July's jobs report.
However, the USD fell slightly by 0.11% to 104.45 on July 31 and continued to fall by 0.53% to 104.03 the following day, after the Fed decided to keep interest rates unchanged at its July meeting but hinted at a possible rate cut in September.
The certainty of a rate cut in September has been priced into the market, putting pressure on the Fed and raising expectations of one or two more rate cuts before the end of the year.
As of August 2, the DXY index recovered, rising slightly by 0.24% to 104.34 amid heightened geopolitical tensions, which increased demand for safe-haven assets due to concerns about the possibility of expanding conflict in the Middle East following the assassination of Hamas leader Ismail Haniyeh in Tehran, Iran.
The market is pricing in three 25 basis point rate cuts by the Fed by the end of the year, reflected in cuts at each meeting in September, November and December.
However, the US dollar fell sharply by 1.20% to 103.22 after the July jobs report showed weaker-than-expected results, raising expectations that the Fed could cut interest rates by 50 basis points in September due to the poor economic situation.
The jobs report showed just 114,000 jobs were added, fewer than the 175,000 forecast, and the unemployment rate rose to 4.3%, higher than economists' forecast of 4.1%.
The market is now pricing in a 71% chance of a 50 basis point rate cut by the Fed in September, up from 31% before the jobs data was released, according to CME Group's FedWatch Tool.
The market has fully priced in at least a 25 basis point cut in September and expects a total easing of 116 basis points by year-end.
