Hanoi [Vietnam], February 12: Banks are raising the price of the USD, while other foreign currencies are falling. Lower USD interest rates in the interbank market compared to the Vietnamese Dong are helping to reduce pressure on the exchange rate at the end of the year.
The State Bank of Vietnam maintained the central exchange rate at VND 25,050. The volume of USD transactions converted to VND in the interbank market during the week (February 2-6) reached approximately VND 756,828 billion, averaging VND 151,366 billion per day, a decrease of VND 12,090 billion per day compared to the previous week. For USD transactions, the maturities with the largest trading volumes were overnight and one-week maturities, accounting for 89% and 7% respectively.
Average USD interest rates tended to be less volatile and showed mixed movements across several key maturities compared to the previous week. Specifically, the average overnight interest rate increased slightly by 0.01%/year to 3.60%/year, while the average 1-month interest rate decreased by 0.04%/year to 3.63%/year. USD interest rates are 5-7%/year lower than the Vietnamese Dong interest rate across various maturities, as Vietnamese Dong interest rates have risen sharply recently. This will reduce pressure on the exchange rate.
Banks increased the USD exchange rate by 20 dong compared to the previous day. Vietcombank's buying rate rose to 25,770 - 25,800 dong and its selling rate to 26,180 dong; ACB's buying rate rose to 25,790 - 25,820 dong and its selling rate to 26,180 dong. Conversely, other foreign currencies decreased. At Vietcombank, the EUR price fell by 80 dong, with a buying rate of 30,073 - 30,376 dong and a selling rate of 31,659 dong; the British pound decreased by 90 dong, with a buying rate of 34,509 - 34,858 dong and a selling rate of 35,975 dong.
The US dollar strengthened globally, with the USD-Index rising 0.11 points to 96.91. The dollar surged against the euro and the Swiss franc after the US jobs report showed unexpectedly positive signals, reinforcing assessments of the solid foundation of the US economy. According to the US Department of Labor, employers added 130,000 jobs in January, significantly higher than the 70,000 jobs forecast in a Reuters survey of economists. This data suggests the Federal Reserve (Fed) is more likely to continue delaying further interest rate cuts. The unemployment rate also fell to 4.3% in January, up from 4.4% in December. According to CME's FedWatch tool, the market now prices a 94% probability that the Fed will keep interest rates unchanged at its upcoming meeting, a sharp increase from the 80% of the previous day.
Source: Thanh Nien Newspaper
