Vietcombank listed the USD selling price at 25,080 VND, down 130 VND compared to yesterday and nearly 1.6% compared to the peak at the end of June.
On the morning of August 20, the State Bank announced the central exchange rate at 24,251 VND, 10 VND lower than yesterday. With a 5% margin, commercial banks are allowed to trade USD in the range of 23,038 – 25,463 VND.
In the banking market, exchange rates fell sharply. Vietcombank lowered its USD buying and selling prices for the third consecutive day, down to 24,710 – 25,080 VND. This rate is down 130 VND compared to the morning of August 19. BIDV quoted the greenback at 24,740 – 25,080 VND, down 140 VND. Exchange rates at Techcombank and Eximbank were also 90-110 VND lower than yesterday.
Compared to the peak set at the end of June, the exchange rate on the banking market is currently 1.6% lower, around 390-400 VND.
On the free market, the USD selling price remained stable, around 25,380 – 25,400 VND. This level is 600-610 VND lower, about 2.3% compared to two months ago.
Foreign currency transactions at the counter of a commercial bank in Ho Chi Minh City, November 2022. Photo: Thanh Tung
The exchange rate has started to fall sharply over the past month, especially since last weekend. With this move, the difference between the free market exchange rate and the listed rate at commercial banks is no longer significant.
The domestic greenback depreciated in line with the world. In the international market, the Dollar Index – an index measuring the strength of the USD – fell below 102 points. This index has been nearly 2% lower in the past two weeks.
Last week, the focus was on US inflation data for July, which came in lower than expected. With inflation trending lower and the labor market more balanced, analysts see a 75% chance that the US Federal Reserve will adjust interest rates by 25 basis points (0.25%) at its September meeting.
The USD strength index decreased by 0.7% last week, with many currencies gaining against the USD such as GBP (1.4%), EUR (1%) or currencies in the Asian region such as THB (1.7%), KRW (1%).