The USD Index continued to rise by nearly 0,2% on Friday, closing the previous week with a 0,3% increase, marking the third consecutive week of gains. Many members of the FED's policy-making committee showed support for a more patient approach to monetary policy compared to other major central banks around the world. The Swiss National Bank implemented its second consecutive rate cut last week, while the Bank of England signaled a similar move for August. Economic activities from manufacturing to services in the U.S. grew to their highest level in 26 months, according to the composite PMI report for June released last Friday. In contrast, U.S. retail sales barely increased in May after declining in April, and new housing starts continued to fall. The increasingly mixed economic picture, along with easing inflationary pressures, has bolstered market confidence in the likelihood of a rate cut by the end of this year. The U.S. Personal Consumption Expenditures (PCE) price index data for June, to be released this Friday, could provide insights into the possibility of a rate cut by the FED in September.
The USD/VND interbank exchange rate was traded within a narrow range last week that continuing to hover around the 25.450 level since late April. This aligns with the subdued market activity throughout the week, characterized by a lack of significant foreign currency inflows and cautious domestic trading sentiment following the FED's June policy meeting. Towards the end of this month and the beginning of July, foreign currency demand in the market is expected to rise sharply, supporting the interbank exchange rate's upward trend.
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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
