Morning of March 17: Central exchange rate increased at the beginning of the week

The State Bank this morning listed the central exchange rate at 24,794 VND, up 15 VND compared to the previous session.

This morning, the State Bank of Vietnam listed the USD buying price at 23,605 VND/USD, up 14 VND; while the USD selling price was listed at 25,983 VND/USD, up 16 VND compared to the previous session.

Meanwhile, USD buying and selling prices at most commercial banks were adjusted down with a common amplitude of 5-10 VND compared to the previous session.

Specifically, as of 9:00 a.m. this morning, the lowest USD buying price is at 25,300 VND/USD (20 dong lower), the highest buying price is at 25,340 VND/USD (11 dong lower). On the selling side, the lowest USD selling price is at 25,690 VND/USD (10 dong lower), the highest buying price is at 25,720 VND/USD (10 dong lower).

The US dollar index (DXY), which measures the greenback's performance against a basket of six major currencies (EUR, JPY, GBP, CAD, SEK, CHF), is currently trading at 103.723, up 0.013 points from the opening.

Despite a slight gain this morning, the US dollar is still hovering near a five-month low against a basket of major currencies, pressured by President Donald Trump's unpredictable trade policies and a series of weak US economic data.

US consumer sentiment has fallen to its lowest level in nearly 2-1/2 years, while inflation expectations have soared on concerns about Mr Trump’s unpredictable tariff policies – which have sparked a global trade war.

The US Federal Reserve (Fed) is expected to keep interest rates unchanged at its meeting on Wednesday, as investors await further signals on the economic impact of its current policy.

Compared to a more than two-year peak (110.17 points) in mid-January, this index has fallen nearly 6%, reflecting a shift from optimism to concern that Donald Trump's tariff policies could push the US economy into recession.

Despite falling slightly from Tuesday's $1.0947 level - its highest since Oct. 11, 2024 - the euro held firm near a five-month peak, trading at $1.0880, up 0.01%.

The euro was boosted by a fiscal deal agreed by German parties on Friday, including a 500 billion euro ($544 billion) infrastructure fund and a reform of debt rules. Chancellor-elect Friedrich Merz said he had secured crucial support from the Greens, whose plan is expected to be approved by parliament next week and promises to boost defense spending and boost German economic growth.

“The market has seen two major changes since the re-rating: a sharp decline in US assets due to tariff uncertainty, and a sharp increase in the outlook for Europe due to fiscal momentum in Germany. This challenges the narrative of US economic superiority,” analysts Dominic Wilson and Kamakshya Trivedi of Goldman Sachs said.

The British pound traded at $1.2936, up 0.01%.

In Asia, the Japanese yen rose 0.02% to 148.61 yen per dollar, not far from the 146.545 yen it touched last Tuesday.

The currency was supported by hawkish signals from the Bank of Japan (BoJ), although the BoJ is expected to keep interest rates unchanged at its meeting on Wednesday. Spring wage negotiations showed large increases in corporate wages, setting the stage for the BoJ to consider raising rates in the future. BoJ Governor Kazuo Ueda expressed concern last week about global economic uncertainty, but said he expected wage increases to boost domestic consumption.

The dollar fell 0.15 percent to 7.2266 yuan per dollar in offshore trading, near last week's low of 7.2158 yuan per dollar touched on Wednesday.

The currency’s momentum comes from a “special action plan” announced by China’s State Council on Sunday to boost income and childcare subsidies to stimulate domestic consumption.

The Australian dollar - a currency sensitive to China's economic developments - rose 0.13% to $0.6332.

The New Zealand dollar rose 0.26% to $0.5759.