Foreign exchange prices on March 5, 2025: USD plummeted, Index fell to 105.59

DNVN - The USD fluctuated greatly on March 5, 2025, influenced by concerns about US tariff policies and the possibility of the Fed cutting interest rates next June.

USD exchange rate on the world market

Foreign exchange prices on March 3, 2025: USD remains unchanged, Index stops at 107.61 points

The Dollar Index (DXY), which tracks the strength of the USD against a basket of six major currencies (EUR, JPY, GBP, CAD, SEK, CHF), is currently down 1.15% from March 4, 2025, to 105.59 points.

The dollar fell to a three-month low on Tuesday as concerns about slowing growth and the impact of tariffs outweighed any support that might come from new tariffs on Canada, Mexico and China.

As of 12:01 a.m. (Eastern US time), 05:01 GMT, the US officially applied a new 25% tax on imported goods from Mexico and Canada, and raised the tax on Chinese goods to 20%.

In response, China announced it would impose additional tariffs of 10-15% on some US goods from March 10. Canada also confirmed it would implement retaliatory measures on Tuesday, while Mexico is expected to take similar action.

Concerns about the trade war and its impact on the global economy should have supported the USD, but recent economic data has been less positive, putting pressure on the currency and US bond yields.

Manufacturers continued to express concerns about import tariffs in a report from the Institute for Supply Management released Monday, adding to a string of poor economic data.

The index measuring the strength of the USD against major currencies currently lost 0.54% of its value, down to 105.96 points - the lowest level since December.

"While the US is extending tariffs to Canada and Mexico, weak domestic economic activity is holding back the dollar's rise following the tariff news," said Chris Turner, head of global markets at ING.

As fears of an economic slowdown and trade conflicts grew, investors moved money into safe havens like the Japanese yen and Swiss franc, which rose nearly 1% on Tuesday as global stock markets tumbled.

The Canadian dollar also rose about 0.45% to C$1.4471 per dollar, after falling to a one-month low of C$1.4542 late Monday when the new tax policy was confirmed.

Meanwhile, the Mexican peso lost 0.3% to trade at 20.76 pesos per dollar, after falling to its lowest level since February 3.

Some analysts say many investors in the market still expect the tariffs to be quickly removed if an agreement is reached, similar to how the US suspended tariffs on Canada and Mexico in February.

"The depreciation reaction of the Canadian dollar and Mexican peso has been limited given the tariffs that have just been imposed. This reflects a belief that the tariffs may not last long, thereby minimizing the negative impact on trade and the economy," said Lee Hardman, senior currency analyst at MUFG Bank Japan.

Domestic USD exchange rate

In the domestic market, in the morning trading session on March 5, the State Bank adjusted the central exchange rate of the Vietnamese Dong against the USD down 3 VND, to 24,755 VND/USD.

At the State Bank Transaction Office, the reference exchange rate for buying and selling also slightly decreased, currently recorded at 23,568 VND - 25,942 VND/USD.

At Vietcombank , the listed USD price is 25,360 - 25,750 VND/USD, 30 VND lower in both directions compared to the previous day.

VietinBank is currently offering to buy USD cash at the lowest price in the market, recorded at 25,210 VND/USD.

Meanwhile, LPBank and OceanBank are buying USD transfers at the lowest price, at 25,232 VND/USD.

HSBC is currently the unit with the highest USD cash purchase price at 25,492 VND/USD.

VietinBank leads with the highest USD transfer buying price, reaching 25,790 VND/USD.

Regarding USD selling price, LPBank and OceanBank are at the lowest level, recording 25,483 VND/USD for cash transactions.

HSBC listed the lowest USD transfer price at 25,722 VND/USD.

SCB Bank has the highest USD cash selling price on the market, reaching 25,820 VND/USD.

Meanwhile, ABBank is holding the leading position in terms of the highest USD transfer price, at 25,850 VND/USD.

The EUR exchange rate at the State Bank's Transaction Office is currently slightly increasing, trading at 24,644 VND - 27,238 VND.

For the Japanese yen, the exchange rate at the State Bank Exchange slightly decreased, recorded at 158 VND - 174 VND.

Viet Anh (t/h)