Monday, December 2, 2024 5:26:18 PM - Markets closed
VN-INDEX 1,251.21 +0.75/+0.06%
HNX-INDEX 225.32 +0.68/+0.30%
UPCOM-INDEX 92.44 -0.30/-0.32%
SBV’s USD/VNĐ central exchange rate hits all time high
vietnamnews - 11/8/2024 8:43:40 AM
 (0 ratings. You must sign in to rate.)
The move came as the dollar index (DXY) hovered around a four-month high of more than 105, with the market welcoming Donald Trump's victory in the US presidential election.
 
 
Commercial banks on Thursday listed the USD/VNĐ exchange rate in the range of VNĐ23,069 and VNĐ25,497 per dollar. Photo cafef.vn
 
The State Bank of Vietnam (SBV)’s central exchange rate of the Vietnamese đồng against the US dollar on Thursday increased by VNĐ25 against the previous day to hit VNĐ24,283 per dollar, the highest level in history since the rate was applied by the SBV in early 2016.
 
The move came as the dollar index (DXY) hovered around a four-month high of more than 105, with the market welcoming Donald Trump's victory in the US presidential election.
 
Meanwhile, the SBV on the day remained unchanged the dollar rates that it buys and sells for commercial banks at its Central Banking Department at VNĐ23,400 and VNĐ25,450 per dollar.
 
With a margin of five per cent, commercial banks on Thursday were allowed to list the USD/VNĐ exchange rate in the range of VNĐ23,069 and VNĐ25,497 per dollar.
 
Under the same move, the USD/VNĐ exchange rate listed at commercial banks also almost hit the regulated cap on Thursday. Accordingly, all major banks quoted the dollar selling price at VNĐ25,497 per dollar, the highest level in history.
 
Since the beginning of this year, the USD/VNĐ exchange rate at commercial banks has increased by about VNĐ1,100 per dollar, equivalent to an increase of 4.4 per cent. In October and early November 2024 alone, the đồng depreciated by more than 3 per cent against the dollar.
 
Analysts said the đồng is likely to continually face strong depreciation pressure due to the election and when he implements his tough international trade policies.
 
Under a report released early this week, analysts of the ACB Securities Company (ACBS) said the policies, including a corporate income tax cut and an import tariff imposition, will strengthen the value of the US dollar and a stronger dollar will increase the risk of depreciation for the đồng in the short term.
 
In addition, tax cuts in the US can support the economy, but high import costs can cause inflation and slow the Fed's interest rate cuts. Long-term high dollar-denominated interest rates will increase pressure on the USD/VNĐ exchange rate.
 
ACBS’s analysts explain if dồng interest rates increase, it will affect the recovery ability of domestic enterprises. In addition, the profits of the banking sector may also be negatively affected. Finally, enterprises with high debt costs, especially dollar debt, will also be negatively affected.
 
This will cause Vietnam to have no room for easing monetary policy, which will negatively impact the economy in general and the profitability of the banking sector, ACBS’s analysts noted.
 
Sharing the same view, experts at the Shinhan Securities Company (SSV) said the exchange rate may face upward pressure until the end of this year because the market tends to choose to invest in low-risk assets and wait for the impact of the US new government's policies, instead of reacting immediately to any US Federal Reserve (Fed)'s interest rate cuts.
 
SSV’s analysts forecasts that the dollar and US government bonds will be safe havens, which push the dollar value to continue to increase compared to other currencies until the end of this year.
 
Director of HSBC Vietnam’s Foreign Exchange, Capital Markets and Securities Services Division, Ngô Đăng Khoa, also believes that, when Trump takes office as US President, the DXY is likely to continue to increase, because the Fed will slow the roadmap of cutting interest rates. — VNS
 
 
Read original article here
Newer News
14:20 2-per-cent VAT reduction extended to the end of June
08:37 E-commerce platforms to declare, pay taxes on behalf of sellers from April 1, 2025
29/11 State bank increases credit growth limit for banks for second time this year
28/11 PM asks central bank to accelerate lending to businesses
28/11 Finance ministry proposes changes in new personal income tax law
27/11 Bank savings among most attractive investment channels
26/11 Banks struggle to reach online lending target
26/11 Tax sector forms task force to support e-commerce platforms
25/11 Signs of renewal amid diverse issuances in green bond market
22/11 Monetary policy forecast unlikely to loosen further
Older News
07/11 State bank to strengthen anti-money laundering efforts with new department
06/11 Amendment to tax regulation on foreign suppliers proposed
06/11 Bad debts expected to slow next time despite rising in nine months
04/11 VN’s gold demand slumped as sharp price rises deterred fresh buying in Q3: report
31/10 Fintech companies become capital providers for small and micro firms
30/10 Gov’t submits to the NA a draft law amending seven laws
30/10 Smart banking emerges as more than just a technological trend
29/10 Interest rates expected to decrease by 0.7 percentage points next year
28/10 Inspection report on gold trading activities being complied, SBV says
28/10 Detailed guidance on banning sale of bancassurance needed
 
Newsletter Signup
Top Stories
VCCI recommends mineral mining rights be granted through auction and bidding
Central bank works to raise interbank rates and ease forex market
Inflation a concern following salary increases
National Council for Sustainable Development established
Việt Nam, Cambodia look forward to $20 billion trade
Market Update
Last updated at 3:05:01 PM
VN-INDEX 1,251.21 +0.75/+0.06%
Real-time chart
Top 5 Actives
Top 5 Gainers
Top 5 Losers
My Favorite Quotes
Your most recently viewed tickers will automatically show up here if you type a ticker in the Get Quotes box on the top of the page.
Company Research
Type in the symbol above for thorough background information, key statistics and financial information.
Stock Sectors
We continuously improve our services, here are the latest updates...
Portfolio
Allow you to monitor a customised group of securities. You can set up multiple Portfolios to help you better manage your investments.
Trigger Alerts
Get up-to-date alerts delivered directly to your email address.
Stock Screener
Allow you to filter the market and find exactly what sort of company you are looking for.
Live Terminal
Get instant access to FREE REAL-TIME streaming quotes for hundreds of stocks from HOSE, HNX and UPCOM exchanges.