USD plummets, Japanese Yen rises to 7-month high.

The reference USD exchange rate listed at the State Bank of Vietnam's Exchange Department is: 23,400 VND - 25,450 VND.

The USD exchange rates at commercial banks for buying and selling are as follows:

Vietcombank: 24,900 VND - 25,270 VND.

Vietinbank : 24,780 VND - 25,230 VND.

Foreign exchange rates, USD/VND exchange rate today, August 6th: USD plummets, Japanese Yen reaches its highest level in 7 months. (Source: Getty Images)

Exchange rate movements in the global market.

The Dollar Index (DXY), which measures the USD against six major currencies (Euro, JPY, GBP, CAD, SEK, CHF), closed at 102.67, down 0.52%.

The US dollar continued its sharp decline, amid a surge in the yen to a seven-month high, as a series of economic data released last week raised prospects of a US recession and the prospect of larger interest rate cuts from the Federal Reserve.

Against the Japanese Yen, the US dollar fell 2.04%, to 143.5, near its lowest level this year.

In other developments, the euro rose 0.37% to $1.095, after climbing to $1.1009, its highest level since January 2nd.

Weaker-than-expected US jobs data, coupled with lackluster earnings reports from major tech companies and growing concerns about the Chinese economy, triggered a global sell-off in stocks, oil, and high-yielding currencies last week, as investors sought safe-haven demand in cash.

The sell-off continued on August 5th, with US Treasury yields continuing to fall, stock indices declining, and the US dollar depreciating.

Adam Button, chief currency analyst at ForexLive, commented: “Looking at the bigger picture, whenever there’s a crisis in the market, it’s clear there’s too much leverage and everyone is rushing into the same type of trade.”

Treasury bond yields have fallen sharply since last week, after the Fed kept its policy interest rate unchanged in its current range of 5.25-5.50%, amid Fed Chairman Jerome Powell's hint at the possibility of a rate cut in September.

Helen Given, a foreign exchange trader at Monex USA in Washington, emphasized: “The non-farm payrolls report at the end of last week shocked traders and raised concerns in the market about the prospect of a recession for the US economy.”

Meanwhile, the Japanese yen surged as traders aggressively unloaded interest rate differentials.

On August 5th, Fed fund futures reflected nearly a 100% probability that the Fed would cut interest rates by 50 basis points at its September central bank meeting, according to the CME FedWatch tool.

Given said: “The sell-off in Japanese stocks during Asian trading has spooked the market, coupled with the recovery of the Yen, and we may be witnessing what many fear is a ‘panic spiral’.”