USD exchange rate today December 6, 2024: USD falls sharply

USD exchange rate today in the world

The US dollar fell as investors continued to bet on the possibility of the US Federal Reserve cutting interest rates by 25 basis points at its December meeting. This stemmed from weaker-than-expected US economic data. Specifically, economic indicators showed a weakening in the US economy, raising expectations that the Fed would adjust monetary policy.

On December 4, Fed Chairman Jerome Powell said the central bank may be “more cautious” in cutting interest rates. However, he affirmed that this did not change market expectations that the Fed would cut interest rates at its December meeting. This reflects a view that, although the Fed may not be in a hurry, the decision to cut interest rates is still very possible.

Economic indicators also showed weakness in the US economy. The number of US weekly jobless claims rose by 9,000 to 224,000, the highest in six weeks, higher than analysts' forecasts. This shows that the labor market is weaker than expected.

Activity in the US service sector also declined. The Institute for Supply Management (ISM) services PMI fell to 52.1 in November, after reaching 56.0 in October. Economists had forecast the index would fall to 55.5, indicating a slowdown in the service sector, although it would remain above 50, indicating that manufacturing activity is still growing.

San Francisco Fed President Mary Daly stressed that policymakers need to be more cautious in adjusting monetary policy, saying they need to ensure that policy is consistent with the current economic situation and future growth prospects.

According to the Fedwatch tool, the market is now pricing in a 76% chance that the Fed will cut rates by 25 basis points in December. While the market earlier this year expected the Fed to cut a total of about 150 basis points in 2024, with only one meeting left this year, the likelihood of a sharp rate cut has diminished.

Another factor weighing on the dollar was the rise in the euro, as geopolitical tensions in France eased. The euro rose sharply after hawkish comments from members of the European Central Bank (ECB), including Bundesbank President Nagel, who stressed that the ECB should not cut interest rates below neutral levels, bolstering confidence that the ECB would maintain a tight monetary policy.

The Japanese yen also rose slightly, mainly due to comments from Bank of Japan (BOJ) board member Nakamura, who said he had no objection to the BOJ raising interest rates, raising expectations that the Bank of Japan may raise interest rates at its policy meeting on December 19. However, the yen's gains were somewhat limited by higher US Treasury yields.

USD exchange rate in the country today

As of December 5, the State Bank announced the central exchange rate at 24,266 VND/USD, up 4 VND compared to the previous day. With a 5% band, the USD exchange rate at commercial banks is allowed to trade in the range from 23,053 VND/USD to 25,479 VND/USD.

The State Bank's exchange continues to maintain the reference buying and selling rates within the range of 23,400 VND/USD (buy) and 25,450 VND/USD (sell).

The USD exchange rate at commercial banks continued to have slight adjustments on December 5. Specifically, Vietcombank increased the buying price by 4 VND, while BIDV increased the buying price by 17 VND and Eximbank also increased by 16 VND. These banks increased the selling price by 4 VND compared to the previously listed price.

Vietcombank listed the USD buying and selling rates at 25,146 - 25,479 VND/USD, an increase of 4 VND in both buying and selling compared to yesterday.

VietinBank kept the buying rate stable at 25,186 VND/USD and increased the selling rate by 4 VND, reaching 25,479 VND/USD.

Techcombank listed the buying rate unchanged, still at 25,207 VND/USD, and increased 4 VND in the selling rate, reaching 25,479 VND/USD.

BIDV adjusted the buying price up by 17 VND to 25,189 VND/USD, and increased the selling price by 4 VND to 25,479 VND/USD.

Eximbank increased 16 VND in buying price, to 25,186 VND/USD, and also increased 4 VND in selling price, reaching 25,479 VND/USD.

Sacombank kept the buying rate stable at 25,210 VND/USD, up 4 VND on the selling rate, reaching 25,479 VND/USD.