Foreign exchange rates, USD/VND exchange rate today, September 20, the USD slid as the market struggled with a 50 basis point interest rate cut from the US Federal Reserve (Fed), as well as the Fed's shift to a loose monetary policy stance.
Exchange rate developments in the domestic market
In the domestic market, according to TG&VN at 7:40 a.m. on September 20, the State Bank announced the central exchange rate of the Vietnamese Dong to the USD increased by 16 VND, currently at 24,167 VND.
The reference exchange rate at the State Bank's transaction office increased slightly, currently at: 23,400 VND - 25,325 VND.
USD exchange rates at commercial banks are as follows:
Vietcombank : 24,380 VND - 24,750 VND.
Vietinbank : 25,115 VND - 25,425 VND.
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| Foreign exchange rates, USD/VND exchange rate today September 20, USD slid as the market struggled with the 50 basis point interest rate cut from the Fed. |
Exchange rate developments in the world market
In the US market, the US Dollar Index (DXY) measuring the greenback's fluctuations against six major currencies (EUR, JPY, GBP, CAD, SEK, CHF) decreased by 0.38% to 100.64.
The US dollar slid in a volatile trading session as markets grappled with a 50 basis point interest rate cut from the US Federal Reserve (Fed), as well as the Fed's shift to an easing stance on monetary policy.
Investor expectations had largely turned dovish in the days leading up to the Fed’s rate cut on August 18, with money markets pricing in about a 65% chance of a 50 basis point cut, while economists were leaning toward a 25 basis point cut.
The DXY index fell 0.38% to 100.64, having slid to a more than one-year low of 100.21 in the previous session. Money markets are pricing in a total of 72 basis points of cuts by the Fed in 2024 and 192 basis points by September 2025.
The US Treasury yield curve, which measures the gap between 2-year and 10-year Treasury yields and is seen as an indicator of economic expectations, has steepened to its highest level since June 2022.
Initial state unemployment claims unexpectedly fell to 12,000 last week, pointing to a strengthening labor market, according to data released by the U.S. Department of Labor on September 19.
Fed policymakers on September 18 forecast another 50 basis point cut in the benchmark interest rate by the end of this year, 100 basis points next year and a final 50 basis points in 2026.
In contrast, the EUR rose 0.4% to $1.1163. Against the yen, the USD rose 0.33% to 142.73 as the market expected the Bank of Japan to keep interest rates unchanged at its policy meeting today, September 20.
The US dollar fell 0.08% to 0.847 against the Swiss franc and fell 0.34% to 7.070 against the Chinese yuan.
Meanwhile, the pound hit its highest level since March 2022 against the dollar after the Bank of England's Monetary Policy Committee (MPC) voted to keep interest rates unchanged. The pound rose 0.5% against the greenback to $1.3278, after hitting a high of $1.3314.
The AUD and NZD were supported by domestic data surprises. Australian employment data beat forecasts for the third consecutive month in August. As a result, the AUD rose 0.77% against the greenback to $0.6815.
Source: https://baoquocte.vn/ty-gia-ngoai-te-ty-gia-usdvnd-hom-nay-209-dong-usd-truot-doc-thi-truong-vat-lon-voi-dot-cat-giam-cua-fed-286993.html
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