Market Highlight 23.09.2024

The USD Index recorded its third consecutive weekly decline, falling nearly 0,4% last week after the Federal Reserve decided to implement a significant 0,5% interest rate cut, marking the start of its monetary policy easing cycle. Meanwhile, the U.S dollar rose nearly 0,9% against the JPY, reaching a two-week high of 143,85, as the Bank of Japan (BOJ) kept its policy rates unchanged in its September meeting and indicated that it would not rush to raise rates in the final months of 2024. BOJ Governor Kazuo Ueda stated after the meeting that the central bank may need to take time to assess the impact of global economic uncertainties, adding that future policy decisions would be based on "economic developments, inflation, and financial markets." In the U.S, following the September meeting, the market is forecasting a nearly 50% probability that the FED will implement another 0,5% rate cut in November and a 0,25% cut in December. The FED’s policy rate is expected to decrease from its current range of 4,75% - 5% to around 2,75% - 3% by the end of 2025.

This week, attention will turn to a series of key speeches from several top members of the Federal Reserve’s policy-setting committee, including Chairman Jerome Powell on Thursday, which are expected to provide further insights into the decisions made during last week’s meeting and the central bank’s future policy trajectory. The most anticipated economic data this week will be Friday’s report on U.S Personal Consumption Expenditures (PCE) inflation, which will offer clarity on whether price pressures continue to ease as monetary policy has begun to loosen.

The USD/VND interbank exchange rate rebounded last week, rising by approximately 65 VND, closing at 24.610 by the end of the week. It is forecast that the exchange rate may revert to a downward trend in the final week of September as concerns over VND liquidity pressures at the end of the quarter resurface.

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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