USD exchange rate today, November 5, 2024: The US dollar falls, gold rises ahead of the US presidential election.

Today's global USD exchange rate

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

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

Conversely, the Euro (EUR) rose 0.7%, reaching $1.0906, while the USD fell nearly 1% against the Japanese Yen (JPY), to 151.645 JPY/USD.

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

The election results show that Democratic candidate Kamala Harris and Republican candidate Donald Trump are still evenly matched, 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 policies, tax cuts, and tariffs would support bond yields and push the dollar higher.

The weakening of the US dollar in the last trading session was also linked to a new poll showing Harris unexpectedly leading by 3 points in Iowa, a key Midwestern state.

Additionally, the market is anticipating the Fed's policy meeting on November 7th, with predictions that the Fed will cut interest rates by 25 basis points, instead of the 50 basis points cut at 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 nearly an 80% chance the Fed will continue to cut rates similarly at its December meeting.

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

On the same day, the Bank of England (BoE) will hold its 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 reduction.

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 interest rates unchanged in its next policy announcement.

The Bank of England's decision-making process was made more difficult by last week's sell-off in government bonds, which caused the pound to depreciate. However, by the morning of November 4th, UK bonds had stabilized and the pound had partially recovered, closing the trading session at $1.29820.

Domestic USD exchange rate today

On the domestic market, at the beginning of trading on November 5th, the State Bank of Vietnam announced that the central exchange rate of the Vietnamese Dong against the US Dollar increased by 11 dong, reaching 24,253 dong.

The reference exchange rate at the State Bank of Vietnam's exchange floor remains unchanged at 23,400 VND (buying) and 25,450 VND (selling).

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

The EUR exchange rate at the State Bank of Vietnam's exchange floor: Slightly decreased, currently at 25,051 VND (buying) and 27,688 VND (selling).

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

The Japanese Yen exchange rate at the State Bank of Vietnam's exchange desk: Slightly decreased, standing at 151 VND (buying rate) and 167 VND (selling rate).