USD exchange rate today November 5, 2024: USD decreases, gold increases before US presidential election

World USD exchange rate today

In the US market, the US Dollar Index (DXY), which measures the USD's fluctuations against six major currencies (EUR, JPY, GBP, CAD, SEK, CHF), fell 0.39% to 103.89.

The US dollar fell in recent trading sessions as investors awaited the results of the US presidential election and the US Federal Reserve's (Fed) policy meeting, which are expected to have a major impact on the global economy.

In contrast, the euro (EUR) rose 0.7% to $1.0906, while the dollar fell nearly 1% against the Japanese yen (JPY), to 151.645 JPY/USD.

The DXY index fell to 103.58, its lowest level in two weeks. US government bond yields also fell 8 basis points.

The election situation shows that Democratic candidate Kamala Harris and Republican Donald Trump are still in a balance, and it is impossible to predict who will win until the election is over.

In recent weeks, many investors have bet on a Trump victory, expecting that his immigration, tax cuts and tariffs policies will support bond yields and push the dollar higher.

The dollar's weakness in recent trading sessions was also linked to a new poll showing Ms. Harris unexpectedly leading by 3 points in Iowa, a key state in the US Midwest.

In addition, the market is looking forward to the Fed's policy meeting on November 7, with the expectation that the Fed will cut interest rates by 25 basis points, instead of 50 basis points as in the September meeting.

According to CME's FedWatch tool, 98% of traders predict the Fed will cut interest rates to around 4.50%-4.75%, and there is a nearly 80% chance the Fed will continue to cut similarly at its December meeting.

"We forecast four more rate cuts in the first half of 2025, bringing the final rate down to 3.25%-3.5%," said Goldman Sachs economist Jan Hatzius.

On the same day, the Bank of England (BoE) will hold a policy meeting and is expected to cut interest rates by 25 basis points. The Swedish Central Bank (Riksbank) is expected to ease further with a 50 basis point cut.

The Bank of Norway is expected to keep interest rates unchanged at its upcoming meeting, similar to the Reserve Bank of Australia, which is also expected to keep rates unchanged in its new policy announcement.

The BoE's decision was complicated by last week's government bond sell-off, which sent the pound plunging. However, by the morning of November 4, UK bonds had stabilized and the pound had recovered some ground, ending the session at $1.29820.

Domestic USD exchange rate today

In the domestic market, at the beginning of the trading session on November 5, the State Bank of Vietnam announced the central exchange rate of the Vietnamese Dong against the USD increased by 11 VND, reaching 24,253 VND.

Reference exchange rate at the State Bank's Transaction Office: Remains at 23,400 VND (buy) and 25,450 VND (sell).

At commercial banks, the USD buying and selling rates are as follows:

EUR exchange rate at the State Bank Exchange: Slightly decreased, currently at 25,051 VND (buy) and 27,688 VND (sell).

At commercial banks, the EUR buying and selling rates are as follows:

Japanese Yen exchange rate at the State Bank Exchange: Slightly decreased, at 151 VND (buy) and 167 VND (sell).