Foreign exchange prices on October 22, 2024: USD maintains strong upward momentum

DNVN - On October 22, 2024, the USD continued to record strong growth thanks to support from US bond yields and positive economic data.

USD exchange rate on the world market

The Dollar Index (DXY), which measures the strength of the USD against six major currencies (EUR, JPY, GBP, CAD, SEK, CHF), reached 103.97 points, down 0.51 points compared to the trading session on October 21, 2024.

The dollar's rise today was mainly due to rising US bond yields, along with a series of positive economic data suggesting the Federal Reserve may cautiously cut interest rates while investors are preparing for the presidential election on November 5.

The greenback has risen for three straight weeks and 14 of the last 16 sessions, thanks to upbeat economic data that has investors easing expectations of a rate cut from the Fed.

According to the CME FedWatch Tool, the market is pricing in an 87% chance of a 25 basis point cut at the Fed's November meeting, while 13% predict the central bank will leave rates unchanged. The market had already priced in at least a 25 basis point cut a month ago, with a 50.4% chance of a 50 basis point cut.

“It’s not about the Fed, it’s about the market adjusting and getting back in sync with the Fed,” said Marc Chandler, chief market strategist at Bannockburn Global Forex in New York. “The economic data has been very positive and we’ll see that next week with GDP numbers.”

The yield on the benchmark 10-year US Treasury note rose 10.5 basis points to 4.18% after hitting a three-month high of 4.186%. Last week, the Atlanta Federal Reserve raised its estimate for third-quarter GDP growth to 3.4%.

Dallas Federal Reserve Bank President Lorie Logan said the central bank will continue to cut interest rates gradually and she sees no reason why the Fed can't continue shrinking its balance sheet.

Additionally, Minneapolis Federal Reserve Bank President Neel Kashkari has also stressed that he expects “modest” interest rate cuts in the next few quarters, although worsening labor market conditions could prompt him to call for faster cuts.

The dollar index, which measures the greenback against a basket of currencies, rose 0.53% to 104.01, on track for its biggest daily percentage gain since Oct. 4. Meanwhile, the euro fell 0.5% to $1.0811 and the pound fell 0.54% to $1.2977.

Domestic USD exchange rate

On October 22, 2024, the domestic USD exchange rate continued to rise thanks to the increase in US bond yields and positive economic data from the US, suggesting that the Federal Reserve may cautiously cut interest rates as investors prepare for the presidential election on November 5.

Opening today's trading session, the State Bank announced the central exchange rate of the Vietnamese Dong against the USD increased by 15 VND, reaching 24,228 VND.

Currently, the exchange rate allowed for trading by commercial banks (CBs) ranges from 23,400 - 25,450 VND/USD. The USD exchange rate has also been adjusted by the State Bank of Vietnam (SBV) to a buying and selling range of 23,400 to 25,450 VND/USD.

At Vietcombank , the current USD buying and selling rates are 25,040 - 25,430 VND. The current USD buying and selling prices are in the range of 24,000 - 25,500 VND/USD.

The EUR exchange rate at the State Bank's buying and selling exchange center has also increased slightly, currently at 25,011 VND - 27,644 VND.

The Japanese Yen buying and selling rates at the State Bank's exchange office also recorded a slight increase, currently at 154 VND - 170 VND.

Lan Le (t/h)

Source: https://doanhnghiepvn.vn/kinh-te/gia-ngoai-te-ngay-22-10-2024-usd-duy-tri-da-tang-gia-manh/20241022085039392