Japanese Yen pegged high, USD regains its position, capital flows return.

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: 24,950 VND - 25,320 VND.

Vietinbank : 24,850 VND - 25,300 VND.

Foreign exchange rates, USD/VND exchange rate today, August 7th: Japanese Yen remains high, USD regains its position. (Source: Reuters)

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 102.93, up 0.24%.

The US dollar has recovered against most major currencies, and the Japanese yen has stabilized around its highest level in seven months against the greenback.

The US dollar closed the trading session at 145.01 yen, up 0.54% for the day.

The US dollar has fallen nearly 6% against the Japanese yen over the past five trading days. The recent rise in the yen was driven by the Bank of Japan's (BOJ) interest rate hike late last week.

Karl Schamotta, market strategist at Corpay, said: “There appears to have been some overexcitement in the market over the past few days. We see demand for safe-haven assets waning and money flows gradually returning to normal across most major currency pairs.”

The US dollar also regained ground against the euro and the British pound. Accordingly, the euro fell 0.21% to $1.0928, after reaching a seven-month high of $1.1009 on August 5th.

The British pound fell 0.64% to $1.2697, its lowest level in five weeks.

Another supportive factor in the currency market is traders' efforts to price in the Federal Reserve's policy at upcoming meetings.

Traders now expect the Fed to ease by 110 basis points this year, pricing in a near 70% chance of a 50 basis point cut in September, down from 85% on August 5th – according to the CME FedWatch tool.