US dollar plunges in Vietnam after new Fed signal

The U.S. dollar sharply fell against the Vietnamese dong at commercial banks on Thursday after the Federal Reserve (Fed) consolidated the prospect to slow down interest rate hikes.

The State Bank of Vietnam (SBV) set the daily reference exchange rate for the U.S. dollar at VND23,662, down VND3 from the previous day.

With the current trading band of +/-5%, the ceiling rate applicable to commercial banks during the day is VND24,845 per U.S. dollar and the floor rate VND22,475.

Sharp decreases were seen at commercial banks.

Vietcombank, a "Big 4" bank, quoted buying and selling rates at VND24,340 and VND24,650 in the afternoon, both down VND160.

Sacombank, a private lender, listed the buying rate at VND24,372 and selling rate VND24,637, both down VND123.

The respective figures at Eximbank, another private bank, were VND24,360 and VND24,640, down VND140 and VND120, respectively.

In the world market, the U.S. dollar fell sharply Thursday after Fed chairman Jerome Powell said smaller interest rate hikes could start in December.

At 12:53 (Vietnam time), the US Dollar Index (DXY), which monitors the fluctuation of the greenback versus major currencies like the EUR, JPY, GBP, CAD, SEK, and CHF, stood at 105.44 points, down 0.48%. This is the lowest level of the DXY in three months.