The USD Index recovered by 0,2% last night after Federal Reserve Governor Michelle Bowman stated that maintaining high interest rates for an extended period is necessary to curb inflation and did not rule out further rate hikes. The FED Governor Lisa Cook acknowledged significant progress in the fight against inflation and cooling in the labor market but was uncertain about the timing of policy easing. Previously, a report indicated a decline in consumer confidence among U.S. households due to a gloomy outlook on business activities, including the job market and income prospects. Consumer confidence has been waning recently as people face higher living and credit costs alongside a weakening labor market. Despite weaker data from retail sales, unemployment claims, and consumer confidence last night, the USD remains strong. Besides data, more concrete signals are needed to confirm the possibility of the FED accelerating rate cuts by the end of this year. Thus, the market is awaiting the Personal Consumption Expenditures (PCE) price report at the end of this week, which is expected to show cooling inflation in May.
The USD/VND interbank exchange rate increased slightly yesterday and closely tracked the effective ceiling rate of 25.466 on Tuesday. The demand for foreign currency in the market surged significantly at the end of June, coupled with the impact of the rising USD on the global market, resulting in a clearer upward trend in the exchange rate after relative stability in the previous two weeks. The SBV supplied nearly 600 Million USD to the market yesterday, bringing the cumulative USD sales at the 25.450 level from late April to approximately 5,5 Billion USD. This figure is likely to continue rising in the final working days of this week.
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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
