The US dollar experienced a notable decline this week, ending a four-week streak of gains. The USD Index (DXY), which tracks the dollar's performance against six major currencies, dropped by 0.42% to close at 101.78. The greenback had initially surged to its highest level since April 2025 but failed to sustain the momentum, peaking near 103 points before reversing course.
Early in the week, the dollar benefited from investor demand for safe-haven assets amid global economic uncertainties, including financial concerns in Europe, geopolitical tensions, and volatility in energy markets. The Federal Reserve's tight monetary policy also supported the dollar's strength. However, mid-week economic data revealed persistent inflation, with the Consumer Price Index (CPI) rising 3.6% year-over-year and core inflation at 2.6%, raising doubts about the Fed's future interest rate adjustments.
The dollar's downward trend accelerated on October 15th as investors shifted funds into US government bonds, driving up bond prices and lowering Treasury yields. This shift reduced the dollar's appeal, and the greenback continued to weaken as investors reassessed the Fed's monetary policy outlook. The likelihood of further interest rate hikes diminished, contributing to the dollar's decline.
In the domestic market, the State Bank of Vietnam set the central exchange rate at 25,637 VND per USD, with commercial banks offering rates ranging from 24,406 VND to 26,868 VND. The euro and Japanese yen also saw stable exchange rates, with commercial banks providing specific buying and selling prices for these currencies.