Dollar cools as US inflation situation improves

The State Bank of Vietnam (SBV) reduced the central exchange rate of the U.S. dollar to VND23,683 Friday, the second reduction in a row as inflation tensions eased in the U.S.

The previous downward adjustment was made on Thursday to VND23,686 per dollar, from the peak of VND23,700 on October 24. This week has seen four downward revisions and one sideway (Wednesday).

Commercial banks can trade the greenback at up to 5% higher or lower than the central exchange rate announced by the SBV on a daily basis.

The consumer price index (CPI) in the U.S. was up 0.4% in October and 7.7% year-on-year, the lowest hike since January, and an improvement on the projected corresponding figures of 0.6% and 7.9%.

At the SBV operations center, the spot selling rate was VND24,860 per dollar Friday, down from VND24,870 one day earlier, also the first decrease this year.

In response to the latest adjustment, commercial banks decreased their buying and selling rates for the greenback.

At state-controlled Vietcombank, a "Big 4" bank in the country, Friday’s buying and selling rates were VND24,630 and VND24,860 respectively, down from VND24,690 and VND24,870 a day earlier.

VietinBank, another “Big 4” member, had corresponding figures of VND24,616 and VND24,867, down from VND24,630 and VND24,870.

BIDV, also a “Big 4” bank, had buying and selling rates of VND24,717 and VND24,867, VND3 lower than Thursday’s VND24,720 and VND24,870, respectively.

On the free market, the U.S. dollar exchange rate went down by VND25 to VND25,125-VND25,195, in tandem with the global development. On Friday, the U.S. Dollar Index (DXY) went down by 2.6% to 107.95.

In an October review resolution, the government had asked the SBV last Friday to come up with solutions for preventing the hoarding of foreign currencies and gold. It also requested the central bank for flexible monetary policies that would fulfil demand for credit while controlling credit for risky sectors.