US Dollar Edges Lower on Black Market

U.S. dollar bills. Photo by Reuters
U.S. dollar bills. Photo by Reuters

Exchange Rate Fluctuations

  • Black Market:

    • The US dollar declined slightly by 0.08% against the Vietnamese dong, reaching VND25,680 at unofficial exchange points.
  • Commercial Banks:

    • The price was kept unchanged with Vietcombank selling at VND25,453.
  • State Bank of Vietnam (SBV) Reference Rate:

    • The reference rate stood at VND24,245.

Annual Performance Overview

  • The American dollar has appreciated 4.23% year-to-date vis-a-vis the dong.

Global Environment

  • The dollar paused at its most depressed value seen within the eight weeks worldwide as markets waited for a U.S. employment report that might determine when the Federal Reserve cuts interest rates.
  • The euro held steady at $1.0889 after rising 0.2% in the prior session, following a rate cut by the European Central Bank (ECB) of one quarter point and marking the start of their easing program.
  • The dollar was slightly stronger at 155.85 yen, however, it was poised to end the week down almost 1%.
  • The U.S. dollar index—which measures the dollar against the euro and five other major currencies—stood at 104.13 without much change from this week’s low of 103.99; it is the first time since April 9 that it had fallen below the key psychological level of 104.
  • The index was forecasted to decrease 0.5% for the week due to weaker macroeconomic data which reignited talks on two possible quarter-point Federal Reserve rate cuts this year.

Performance Insights

  • The U.S. dollar displayed mixed performance—falling against the Vietnamese dong in black market dealings but holding steady in official bank transactions.
  • Two main factors that could affect future rates:
    • Global economy.
    • Next month's report on American employment.

Notes for Stakeholders

  • Stakeholders are advised to continuously watch economic indicators in addition to exchange rates for their decision-making.
  • Stay tuned for more updates, particularly on decisions made by the Federal Reserve and trends in the global economy, as new data comes out.


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