Foreign exchange rates, USD/VND exchange rate today, October 12th: The US dollar receives support from the Fed’s cautious monetary policy.

Foreign exchange rate update table – Techcombank USD exchange rate today

Exchange rate movements in the domestic market

On the domestic market, according to the World and Vietnam Newspaper at 8:00 AM on October 12th, the State Bank of Vietnam announced the central exchange rate of the Vietnamese Dong at 25,629 VND.

The reference USD exchange rate listed at the State Bank of Vietnam’s Exchange Department is: 24,398 VND – 26,860 VND.

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

Vietcombank : 25,660 VND – 26,070 VND.

Vietinbank : 25,629 VND – 26,074 VND.

Foreign exchange rates, specifically the USD/VND exchange rate today, October 12th, show that the US dollar is expected to continue receiving support from the cautious monetary policy outlook of the US Federal Reserve (Fed). (Source: Business Marketing)

Global market developments

This week, the US dollar is expected to continue receiving support from the Federal Reserve’s cautious monetary policy outlook, US government bond yields, and uncertainties in international financial markets.

However, the dollar’s upward momentum could face obstacles if new economic data shows cooling inflation or a weakening outlook for US growth.

One of the most important factors influencing the USD’s performance this week is the US inflation data. The September Consumer Price Index (CPI), along with related economic data, will provide further basis for the market to assess the Fed’s policy outlook.

If inflation is higher than expected, expectations of maintaining high interest rates for an extended period could increase, thereby supporting the US dollar and US bond yields. Conversely, if price pressures ease significantly, the market may increase expectations of Fed easing policy in the near future, putting pressure on the greenback.

In addition, the Fed’s stance continues to be a key factor guiding the foreign exchange market. If US central bank officials signal a hawkish stance to control inflation, the USD could benefit from interest rate differentials with other major economies.

However, the likelihood of the Fed continuing to raise interest rates still depends on inflation trends and the health of the economy. Lower-than-expected data could lead investors to adjust their policy expectations, increasing exchange rate volatility in the short term.

The evolution of US government bond yields also needs to be closely monitored. Rising yields could bolster the attractiveness of USD-denominated assets, especially as investors expect US interest rates to remain high. However, if yields rise due to concerns about budget deficits and the burden of public debt, market sentiment could become more cautious towards US assets.

Therefore, the direction of yields will depend not only on monetary policy expectations, but also on investors’ assessment of the US fiscal outlook.

On the international market, the Euro and the Japanese Yen can also significantly impact the performance of the US dollar. Financial and political instability in Europe could put pressure on the Euro, thereby supporting the US dollar.

Meanwhile, the interest rate differential between the US and Japan continues to affect the USD/Yen exchange rate. If Japan signals an interest rate hike or its officials take steps to curb the Yen’s depreciation, the USD could face downward pressure against it.

Furthermore, oil price movements and geopolitical situations can alter the demand for holding the US dollar. Rising energy prices risk maintaining inflationary pressures, while international instability could boost demand for highly liquid assets. Conversely, if tensions ease and investor sentiment improves, safe-haven demand may decline.

Overall, the US dollar is likely to remain supported this week, but volatility is unavoidable ahead of key US economic data releases. High inflation, rising bond yields, and a hawkish stance from the Fed will support the greenback’s upward momentum. Conversely, signs of cooling inflation or a weakening US economy could trigger profit-taking and put pressure on the currency.