Dollar Strengthens Against Dong in 2024

Vietcombank reported a slight increase in the dollar's value, selling it at VND25,551 on Tuesday morning, marking a 0.03% rise.

Central Bank Adjusts Reference Rate

The State Bank of Vietnam has adjusted its reference rate by 0.03% to VND24,335. Meanwhile, the dollar remained steady around VND25,850 on the black market.

Foreign Exchange Reserve Insights

According to RongViet Securities Corporation, the central bank sold approximately $9.4 billion worth of the greenback this year, amassing a foreign exchange reserve of roughly $80 billion. The reference rate has seen an upward adjustment of about 1.9% since the beginning of the year.

Global Dollar Performance

On the global stage, the dollar maintained its strength on the final trading day of the year, set to record significant gains in 2024 against most currencies. This trend is attributed to investors' anticipation of fewer U.S. rate cuts and the policies of the incoming Trump administration, as reported by Reuters.

Impact on the Yen and Dollar Index

The dollar's rise, supported by increasing Treasury yields, has pressured the yen towards its lowest points since July, the last time Japanese authorities intervened. On Tuesday, the yen was at 157.02 per dollar, heading for a 10% drop in 2024, marking its fourth consecutive year of decline against the dollar. The dollar index, which measures the U.S. currency against six other major units, was at 108.06, close to the two-year high it reached this month. The index has climbed 6.6% in 2024 as traders reduced expectations of deep rate cuts in the coming year.