USD Exchange Rate Today (September 18, 2024): Updates and Analysis

The State Bank announced the central exchange rate of the Vietnamese Dong to the USD increased by 4 VND, currently at 24,141 VND. Meanwhile, in the US market, the US Dollar Index (DXY) measuring the greenback’s fluctuations against six major currencies (EUR, JPY, GBP, CAD, SEK, CHF) increased by 0.25%, reaching 101.01.

USD Exchange Rate Today in the World

The US dollar rose against most major currencies on Tuesday after better-than-expected retail sales data bolstered hopes for a more dovish stance from the US Federal Reserve at its first interest rate cut in more than four years at its policy meeting today.

Data from the US Department of Commerce released on September 17 showed that US retail sales unexpectedly increased by 0.1% in August, indicating that the economy remained solid in the third quarter.

The Fed’s Federal Open Market Committee will make its decision on interest rates at the end of its two-day policy meeting on September 18 and 19. Chairman Jerome Powell will then hold a press conference. The Fed last cut interest rates in March 2020, amid the Covid-19 pandemic.

“I think all markets at this point are locked in on the Fed meeting,” said Marvin Loh, senior global market strategist at State Street in Boston.

Against the Japanese yen, the dollar rose 0.87 percent to 141.830. Meanwhile, the euro fell 0.10 percent to $1.112125, not far from its yearly high of $1.1201. Against the Swiss franc, the dollar rose 0.15 percent to 0.8460.

Fed funds futures show a 63% chance of a 50 basis point rate cut, up from 30% last week, while the market is pricing in a 37% chance of a 25 basis point cut.

However, other recent economic data appeared to support the Fed cutting rates at a lower rate. US business inventories, a key component of gross domestic product, recorded a better-than-expected increase of 0.3% in July.

“the market is pricing in multiple rate cuts over the next few months,” said Axel Merk, president and chief investment officer at Merk Investments in Pal Alto, California.

The Bank of Japan is expected to keep interest rates unchanged at its policy meeting on September 20, but signal that more rate hikes are coming.

The Bank of England is also expected to keep interest rates unchanged at 5% at its policy meeting tomorrow (19 September); although markets have priced in nearly 36% for another cut. The pound, which has been one of the best performing major currencies this year, has gained 3.41% against the greenback, helped by signs of recovery in the UK economy and stabilising inflation. It closed the previous trading session down 0.37% to $1.31665.

Chinese markets are closed for the Mid-Autumn Festival holiday until today (September 18).

The CAD rose 0.04% to $1.35935. Meanwhile, the AUD and NZD traded at $0.67595 and $0.61900, respectively.

USD Exchange Rate Today in the Country

In the domestic market, at the beginning of the trading session on September 18, the State Bank announced the central exchange rate of the Vietnamese Dong against the USD increased by 4 VND, currently at 24,141 VND.

The reference exchange rate at the State Bank’s transaction office increased slightly, currently at: 23,400 VND – 25,298 VND.

USD exchange rates at commercial banks are as follows:

The EUR exchange rate at the State Bank’s buying and selling exchange center increased slightly, currently at: 25,408 VND – 28,193 VND.

EUR exchange rates at commercial banks are as follows:

The Japanese Yen exchange rate at the State Bank’s exchange office has increased slightly, currently at: 163 VND – 180 VND.