Market Highlight 21.06.2024

The USD gained over 0,4% against other major currencies last night due to the widening interest rate policy gap between the U.S and other leading economies. Mixed economic data from the U.S did not seem to affect the strength of the Greenback, while the Eurozone is caught in a political turmoil ahead of the French parliamentary elections in two weeks. The U.S Federal Reserve maintains its policy interest rate at a two-decade high as policymakers look for signs of easing inflation. This contrasts with central banks in Canada, Europe, and Switzerland, which are beginning to ease monetary policy again. Yesterday, the Swiss central bank made its second consecutive rate cut this year.

The JPY fell sharply by nearly 0,6% against the USD for the sixth consecutive day, marking the most significant decline in three months. The USD/JPY pair ended yesterday near 159 points which is not far from of the year's lowest level of 160,17. The JPY continues its decline after the U.S Treasury announced it would add Japan to the "monitoring list" for foreign exchange activities. The renewed weakening of the JPY increases the likelihood that the Japanese government will undertake further forex interventions after selling about 62 Billion USD to support the domestic currency earlier this year. A strong USD over the past two years has forced many countries to intervene to stabilize their currencies.

The USD/VND interbank exchange rate remained stable around rate of 25.450 yesterday. The exchange rate volatility this week has been quite narrow with relatively quiet trading activity in the market. The free market exchange rate edged up slightly to nearly 25.850.

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Directly contact us to receive market news and consultancy on foreign exchange products and derivatives:

- Financial Markets Division – Email: ktttc@acb.com.vn ; or

- Mr. Khanh Hoang (Financial Markets Senior Analyst) – Email: hoangnk@acb.com.vn