In the first half of this year, the exchange rate was a major concern for investors and regulators but now the pressure has eased, with the U.S. dollar expected to fall further against the local dong currency in the rest of the year External and internal pressures on exchange rate subside On August 10, 2024, Vietcombank quoted the selling price at VND25,270 per dollar, down from the May 2024 peak of over VND25,470. The dollar quoted by Vietcombank has since the beginning of the year appreciated by 3.5% against the Vietnam dong, down from the 4.4% rise recorded in May 2024. In the informal market, the current rate has also risen by about 3.5% by now compared to 5.1% at the end of June 2024. Since early July 2024 the exchange rate pressure from both internal and external factors has gradually eased. The main external factor has been the drop in the U.S. Dollar Index (DXY) to around 103 now from over 106 in June 2024. This decline is attributed to the increasing possibility that the U.S. Federal Reserve (Fed) could cut interest rates for the first time in September 2024 and that the rate cuts for 2024 will be […]
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