Hanoi (VNA) – Prices of gold, real estate and stocks would be pushed up by the US Federal Reserve (Fed)’s decision to reduce interest rates, a move that tends to make the US dollar lose value against other foreign currencies, according to insiders.
Fed has announced to cut interest rates for the first time in a decade. In an effort to sustain the US economy’s longest expansion on record, Fed lowered the interest rates by a quarter-percentage-point on July 31, bringing the target range for the Federal funds rate to between 2 percent and 2.25 percent.
Prices of gold, real estate and stocks would be pushed up by the US Federal Reserve (Fed)’s decision to reduce interest rates, a move that tends to make the US dollar lose value against other foreign currencies, he said.
“Dow Jones dropped on the unsettled US-China trade war, not Fed’s interest rate cut. I think the securities, gold and property markets as well as other economic sectors will feel the impact of Fed’s rate cut in the time ahead. In this way, Vietnam’s gold market could see price rise while the realty market could maintain its stability…”, Hieu analysed.US dollar, the VND/USD exchange rate will not change dramatically but Vietnam may lose export advantages in many other markets.
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