Bank and free USD prices both fell sharply

On the morning of September 6, the State Bank announced the central exchange rate at 24,202 VND per USD, down 20 VND compared to yesterday. With a 5% margin compared to the central exchange rate, commercial banks are allowed to buy and sell USD today in the range of 22,992 - 25,412 VND.

This morning, the US dollar price at commercial banks fell sharply for the second day, with the total adjustment in two days reaching 150-220 VND per USD.

Vietcombank adjusted the buying and selling price down to 24,500 - 24,870 VND, 50 VND lower than yesterday.

At other banks in the market, the US dollar price fell even deeper. BIDV today decreased by 115 VND in both buying and selling prices, down to 24,470 - 24,810 VND. Eximbank decreased by 100 VND to 24,450 - 24,810 VND. At ACB, each USD also fell to 24,400 - 24,800 VND, 100 VND lower than yesterday.

The domestic USD price has been on a downward trend since the beginning of August. Compared to the historical high set more than a month ago, each USD in banks has decreased by more than 2.3%.

Currently, the greenback is at the same level as in mid-March of this year and is only about 1.5% higher than at the beginning of this year.

On the free market, foreign exchange points also sharply reduced the buying and selling prices of US dollars this morning. At the exchange points in Ho Chi Minh City, the USD price was 100 VND lower than yesterday, down to 25,100 - 25,190 VND.

The domestic US dollar price cooled down thanks to the performance of the USD Index - a measure of the greenback's strength in the international market. This index started to decline from the end of June and the decline began to strengthen from the beginning of August. Currently, the USD Index is around 100.97 points, 3.3% lower than the beginning of August.

With inflation in the US trending down and the job market weakening, analysts agree that the US Federal Reserve (Fed) may start its interest rate cut cycle from September. With the recent volatility in the global market, experts even expect a stronger cut. The benchmark yield on the 10-year US Treasury bond fell from 4.5% in the second quarter to just under 4% in August. In this context, the greenback weakened while safe-haven investment channels such as gold were forecast to rise.