USD exchange rate : Continue to increase when the possibility of increasing interest rates exists

New York Fed President John Williams on April 11 emphasized the prospect of the Fed only raising interest rates again.

On the world market, the USD index reached 101,830, up 0.1% at 6:31 am on April 12, Vietnam time.

The March jobs report released late last week showed the labor market remained very strong, reinforcing the possibility of the Fed raising interest rates by 25 basis points (bps) next month.

Economists polled by Dow Jones expect the consumer price index (CPI) in March to increase 5.2% year-on-year, slower than the 6% rate recorded in the previous month.

Michael Kramer, founder of asset management firm Mott Capital Management, said: “If the CPI is released at or slightly below expectations, it will not have an impact.” . He added that the Fed is likely to raise rates by 25 bps in May.

Kramer said that the likelihood of the Fed raising interest rates has increased from about 50% to 70% after the latest jobs report was released. If the CPI does not rise much more slowly than expected, the Fed will still pull the policy rate above 5% “because inflation is still too high”.

New York Fed President John Williams on April 11 emphasized the prospect of the Fed only raising the key rate again, with an increase of 25 basis points. However, the Central Bank’s policy path will depend on upcoming data.

Meanwhile, Chicago Fed President Austan Goolsbee said that the US central bank should be cautious about raising interest rates in the face of recent banking stress.

On April 12, the State Bank of Vietnam (SBV) announced the central exchange rate at 23,608 VND/USD, an increase of 2 VND compared to the listed level last morning. 

The reference selling rate at the SBV’s Exchange is 23,450 – 24,738 VND/USD.

The buying price of USD at banks is currently in the range of 23,220 – 23,300 VND/USD while the selling price remains in the range of 23,600 – 23,751 VND/USD.