The US dollar exhibited a slight rise against the Vietnamese dong on Tuesday morning, with Vietcombank increasing its dollar sales by 0.0075% to VND26,403. In contrast, the black market exchange rate recorded a 0.07% dip to VND27,850.
Worldwide Currency Outlook
Globally, the US dollar maintained a stable position on Tuesday as investors weighed the possibility of the Federal Reserve reducing interest rates in the upcoming month. This speculation is fueled by recent dovish remarks from policymakers and the weak yen’s potential for intervention.
Chris Weston, head of research at Pepperstone, commented on the situation. “There is an increased scrutiny on each Federal Reserve voter’s stance and their views on a potential rate cut in December. This makes sense because the market, as well as the Federal Reserve, has not received the kind of data that would typically influence their policy decision. Perhaps the biggest unknown is Fed Chair Jerome Powell’s viewpoint, but it’s reasonable to assume that he might favor a rate cut in December.”
Rate Cut Speculations Impact on the Dollar
These sudden speculations regarding a rate cut have had a minor impact on the dollar. The European euro recently traded at $1.1522, marking a slight gain, while the British pound was at $1.3103. The dollar index, which measures the US currency against its major rivals, stood at 100.2 in the early trading hours.
Questions & Answers
What was the impact of the rate cut speculation on the US dollar?
The rate cut speculation has slightly weighed down the US dollar.
What did Chris Weston, head of research at Pepperstone, say about the potential rate cut?
Weston indicated that the market and the Federal Reserve haven’t received the necessary data to influence policy decisions. However, he noted that it’s plausible Fed Chair Jerome Powell might favor a rate cut in December.
What was the status of the dollar index in early trading?
In early trading, the dollar index, which measures the US currency against its major rivals, was at 100.2.