Japanese Yen rises again as investors sell more USD.

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: 24,600 VND - 24,970 VND.

Vietinbank : 24,603 VND - 25,023 VND.

Foreign exchange rates, USD/VND exchange rate today, August 5th: Japanese Yen rises again, investors sell more USD. (Source: Vietnamnet)

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 104.49.

The US dollar edged lower after a series of US economic data were released.

Accordingly, prices in the US stabilized in February, with service costs slowing significantly, making a June interest rate cut by the Federal Reserve (Fed) still require careful consideration.

A report from the Commerce Department on March 29 also showed that consumer spending increased at its strongest pace in just over a year last month, underscoring the economy's resilience. The U.S. continues to outperform its global peers despite higher borrowing costs, thanks to a robust labor market.

Jeffrey Roach, chief economist at LPL Financial in Charlotte, North Carolina, said: “Inflation is slowing down and this could continue throughout the year. By the time the Fed meets in September, the economic data will be compelling enough for them to begin cutting interest rates.”

Although price pressures are easing, the pace has slowed compared to the first half of last year, and inflation remains above the Fed's 2% target.

Fed officials last week decided to keep the central bank's policy interest rate unchanged in its current range of 5.25%-5.50%, after raising it by 525 basis points since March 2022.

Policymakers anticipate three interest rate cuts this year. Financial markets are expecting the first cut to occur at the June policy meeting.

Expectations of a Fed interest rate cut have led many investors to sell more USD, pushing the value of the greenback down despite heightened tensions in the Middle East.

Meanwhile, the yen rebounded after the Bank of Japan intervened in the foreign exchange market in July with 5.53 trillion yen ($37 billion) to pull the yen back from its 38-year low (the lowest point was 160 yen to 1 USD and it is currently at 146.5 yen to 1 USD).