USD exchange rate today September 7, 2024: Domestic USD drops sharply

Domestic USD exchange rate today

The reference USD exchange rate at the State Bank's Exchange is listed at 23,400 - 25,450 VND/USD (buy - sell), unchanged in both buying and selling compared to the previous session.

The USD exchange rate in the free market this morning decreased in the buying direction and increased in the selling direction compared to the previous session. At the Hanoi market, at 6:30 a.m., the USD was traded (buying - selling) at around 25,062 - 25,117 VND/USD, a sharp decrease of 42 VND/USD in the buying direction and an increase of 48 VND/USD in the selling direction compared to the previous trading session.

Commercial banks have had the second consecutive session of sharply reducing the buying and selling prices of USD compared to the previous session. Specifically, the USD exchange rate at Vietcombank listed the buying and selling prices of USD at 24,400 - 24,770 VND/USD, sharply decreasing by 150 VND/USD for both buying and selling compared to the previous session.

BIDV listed the USD buying and selling prices at 24,445 - 24,785 VND/USD, a sharp decrease of 140 VND/USD for both buying and selling compared to the previous session.

At Vietinbank, the listed USD buying and selling prices are at 24,270 - 24,770 VND/USD, a sharp decrease of 150 VND/USD for buying and selling compared to the previous session.

Eximbank listed the USD buying and selling prices at 24,420 - 24,780 VND/USD, a sharp decrease of 130 VND/USD for both buying and selling compared to the previous session.

USD exchange rate today in the world

Meanwhile, in the US market, the US Dollar Index (DXY) measuring the greenback's fluctuations against six major currencies (EUR, JPY, GBP, CAD, SEK, CHF) increased by 0.08%, reaching 101.19.

The US dollar rose in the last trading session, after data showed US jobs growth was lower than expected in August, setting the stage for a moderate interest rate cut by the US Federal Reserve (Fed).

The U.S. Department of Labor's Bureau of Labor Statistics said late last week that nonfarm payrolls increased by 142,000 jobs last month, after increasing by 89,000 jobs in July. Economists in a Reuters poll had forecast a gain of 160,000 jobs, following a previously reported increase of 114,000 jobs in July.

The dollar initially fell as the jobs data was released, but quickly recovered. The greenback also found support as stocks and other risk assets sold off over the weekend.

Traders are now betting on a 31% chance that the Fed will cut its policy rate to a range of 4.75%-5% at its next meeting scheduled for September 17-18, according to LSEG data. Before the report was released, the market was betting on a 43% chance that the Fed would cut rates by 25 basis points.

“A 50 basis point rate cut at the central bank’s September meeting remains unlikely, but today’s announcement provided clear evidence of a sharp deterioration in the labor market and will strengthen the case for at least one major rate cut by the Fed in the coming months,” said Karl Schamotta, chief market strategist at payments firm Corpay in Toronto.

Traders have been selling the dollar over the past few months on concerns that the slowing US economy will require aggressive rate cuts.

Fed policymakers hinted on September 6 that they were ready to begin a series of interest rate cuts at the US central bank's meeting in two weeks, noting that the labor market was cooling.

Fed Chairman Jerome Powell signaled that the central bank's focus was shifting from fighting inflation to preventing a deterioration in the labor market, and expressed support for the start of a monetary easing cycle in the coming period, at the annual economic symposium in Jackson Hole last month.