Dollar drops on black market
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The U.S. dollar plunged on the black market Wednesday after data shows a decline of the greenback’s value globally as U.S. inflation seems to be cooling down.
The dollar fell 0.48% from Monday to VND25,000 at unofficial exchange points. It has dropped 1.96% since the peak of VND25,500 last month.
Vietcombank, Eximbank and several other lenders kept the exchange rate unchanged from Tuesday at VND24,860. The State Bank of Vietnam (SBV) also maintained its reference rate at VND23,677.
The USD Index, which measures the greenback’s strength against major currencies, has fallen 5.3% since its peak in early September.
Data last week had shown that U.S. inflation cooled more than expected in October, raising bets that the Fed could temper its tightening cycle after delivering four consecutive 75 basis point hike this year.
Goldman Sachs said it expects a “significant” decline in U.S. inflation next year due to easing in supply chain constraints, a peak in shelter inflation and slower wage growth.
Questions & Answers
Q.What prompted the dollar's recent fall on the black market?
What prompted the dollar's recent fall on the black market?
The U.S. Dollar plunged after data indicated a global decline in its value. This followed news that U.S. Inflation appears to be cooling, influencing market sentiment.
Q.How much has the dollar's value dropped on the black market since its peak last month?
How much has the dollar's value dropped on the black market since its peak last month?
The dollar has fallen by 1.96% since reaching its peak value of VND25,500 last month. On Wednesday, it traded at VND25,000 at unofficial exchange points.
Q.How have official Vietnamese banks reacted to the dollar's movements?
How have official Vietnamese banks reacted to the dollar's movements?
Vietcombank, Eximbank and other lenders maintained their exchange rate at VND24,860, unchanged from Tuesday. The State Bank of Vietnam also kept its reference rate steady at VND23,677.
Q.What is Goldman Sachs's prediction for U.S. Inflation next year?
What is Goldman Sachs's prediction for U.S. Inflation next year?
Goldman Sachs anticipates a 'significant' drop in U.S. Inflation in the coming year. They attribute this to easing supply chain issues, a peak in shelter inflation, and slower wage growth.
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