The USD price in the international market declined in the past week (March 13-17, 2023) when the market bet that the US Federal Reserve (Fed) will slow down the rate of interest rate hikes to deal with the aftermath of the crisis. the collapse of the Silicon Valley Bank (SVB).
On the international market, the USD-Index dropped to 103.86 points, down 0.8 points after 1 week.
Greenback strength "reduced" as markets bet that the Fed will slow down rate hikes to curb inflation, after the US administration stepped in to deal with the aftermath of the collapse of the Valley Bank Silicon.
President Joe Biden said the government will act quickly to ensure the interests of depositors and strengthen the confidence of the American people in the banking system of this country.
Accordingly, the Fed has announced that it will launch the Bank Term Financing Program (BTFP), which allows banks to borrow funds with maturities up to one year, helping to reduce liquidity stress.
Fed fund futures slid, with Fed interest rate expectations sliding from above 5% last week to 3.84%. Goldman Sachs (NYSE:GS.N), among other major banks, said it no longer expects the Fed to raise rates at the end of its two-day policy meeting on March 22.
Source: SBV
Domestically, the central exchange rate of the Vietnamese dong to the US dollar also decreased by 19 dong compared to the session of 10/03, to 23,620 dong/USD in the session 17/03/2023.
The State Bank of Vietnam (SBV) continued to list the spot buying price at 23,450 VND/USD and kept the selling price at 24,780 VND/USD.
Source: VCB
At the same time, the exchange rate listed at Vietcombank (HM:VCB) also decreased by 90 VND/USD in both directions, to 23,380 VND/USD (buying in) and 23,750 VND/USD (selling out).
Source: VietstockFinance
Notably, the USD/VND exchange rate on the free market decreased by 180 dong in the buying afternoon but decreased by 160 dong in the selling afternoon on March 17, reaching 23,550 dong/USD (buying in) and 23,620 dong/USD (buying in) sold out).