USD exchange rate today August 7: USD turns to increase

World USD exchange rate today August 7

The Dollar Index (DXY), which measures the USD against six major currencies (EUR, JPY, GBP, CAD, SEK, CHF), stopped at 102.90 points, up 0.23 points compared to the transaction on August 6, 2024.

The US dollar recorded a recovery against other major currencies, while the Japanese yen held steady at a seven-month high against the dollar, after recent notable fluctuations were moderated.

Global stock markets saw a positive correction, with Japan's Nikkei index rising 10% on August 5, offsetting a 12% drop the previous day, while European stocks also struggled to recover.

Axel Merk, President and Chief Investment Officer of Merk Investments, expressed his unsurprised view that continued market volatility is likely, but stressed that recent large swings have gradually returned to normal.

The Japanese yen has been on a recent rise due to increased market volatility, which has seen investors move away from carry trades, supported by the Bank of Japan's decision to raise interest rates over the weekend.

The carry trade, an investment strategy based on borrowing capital from low-interest-rate countries such as Japan or Switzerland to invest in higher-yielding assets in other economies, has declined due to market volatility.

Karl Schamotta, market strategist at Corpay, said that recent volatility may have been overdone, but also pointed out that the demand for safety has decreased and flows are gradually stabilizing across major currency pairs.

The currency market is witnessing significant movements, largely due to the monetary policy strategies of the US Federal Reserve (Fed) in their upcoming meetings.

Investors expect the Fed to cut interest rates another 110 basis points this year, with a 70% chance of a 50 basis point cut in September, a slight decrease from the 85% seen on Aug. 5, according to data from the CME FedWatch tool.

Fed policymakers pushed back against the view that the decline in July's jobs data was a sign of a slowing economy, warning that interest rate cuts may be needed to prevent such a scenario.

Domestic USD exchange rate today August 7

The US dollar showed recovery against other major currencies in the market.

The State Bank of Vietnam (SBV) has adjusted the central exchange rate VND/USD down to 24,240 VND/USD, down slightly by 1 VND compared to the previous day.

The USD exchange rate range maintained by commercial banks is from 23,400 to 25,450 VND/USD.

The State Bank of Vietnam also sets the USD buying and selling rates within a similar range.

Vietcombank announced the buying rate at 24,950 VND/USD and the selling rate at 25,320 VND/USD, an increase of 50 VND in the buying rate and unchanged in the selling rate compared to August 6.

The current buying and selling price of USD in the market fluctuates between 24,000 and 25,500 VND/USD.