US Dollar Index rises while SBV sets VND exchange rate for Oct 24
Global Dollar Strength and Foreign Exchange Shifts on October 24
The US dollar index increased by 0.14 percent to 101.75, according to market data. This slight appreciation occurred as international markets absorbed a broad sell-off in artificial intelligence technology stocks, which prompted investors to reevaluate monetary policy expectations and seek out safe-haven assets.
Central Bank Policy Expectations Across Major Economies
Investors are now closely monitoring upcoming monetary policy decisions from the Federal Reserve, the European Central Bank, and the Bank of Japan. All three institutions are widely expected to keep interest rates unchanged during their scheduled meetings next week. Market pricing tracked by LSEG indicates that the probability of a Federal Reserve rate hike in December sits at 81 percent, down slightly following recent equity market declines. Meanwhile, traders price the likelihood of a European Central Bank rate increase in December at 66 percent.
Economic indicators released in late October show diverging growth patterns across regions. Private sector growth in the euro zone slowed to a four-month low, weighed down by a continued contraction of economic activity in France. Citi economist Giada Giani noted that this pullback brings purchasing managers’ index indicators in line with other growth metrics rather than pointing to fresh downside risks, while the rest of the euro zone remains stable. In Japan, core annual inflation exceeded the central bank’s two percent target in September for the first time in nine months, raising market expectations for a potential rate increase by the Bank of Japan in December to 61 percent.
Foreign Exchange Movements and Safe-Haven Demand
Currency valuations shifted as capital rotated out of risk assets and into traditional safe havens like the Japanese yen. The euro dropped 0.21 percent to trade at 1.1191 dollars, heading toward a weekly loss due to escalating budgetary and political pressures in France. Conversely, the Japanese yen gained ground, retaining a weekly appreciation of approximately 0.7 percent against the dollar despite slipping 0.1 percent on the day to 156.9 yen per dollar.
Domestic Exchange Rates in Vietnam
On the domestic market, the State Bank of Vietnam set the central exchange rate of the Vietnamese dong against the US dollar at 25,627 VND on October 24. The central bank’s trading band positioned the buying and selling rates between 24,396 VND and 26,858 VND. Commercial banks reported spot rates including Vietcombank quoting the dollar at 25,610 VND for buying and 26,020 VND for selling. VietinBank listed buying at 25,475 VND and selling at 26,015 VND, while MB recorded 25,640 VND for buyers and 26,020 VND for sellers.
Official exchange rates for the euro at the State Bank of Vietnam moved to a range between 27,313 VND and 30,188 VND. Commercial lenders priced the euro with Vietcombank at 28,219 VND to buy and 29,707 VND to sell, VietinBank at 28,073 VND to buy and 29,793 VND to sell, and MB at 28,388 VND to buy and 29,760 VND to sell. Japanese yen valuations at the state bank reached 156 VND for buying and 172 VND for selling, while commercial quotes saw Vietcombank trading at 158.33 VND and 169.24 VND, VietinBank at 159.18 VND and 170.68 VND, and MB at 159.97 VND and 169.99 VND respectively.