On December 19, at the Fourth Federal Open Market Committee (FOMC) meeting in 2018, the Federal Reserve (Fed) has officially raised the range of its benchmark interest rate by a quarter of a percentage point to between 2.25 and 2.5 per cent. The reason for the Fed to increase interest rates for the fourth time mainly comes down to the US’ current economic situation, with its stock market on a steep downward slope and core inflation rate showing signs of decrease, and aims to gradually cool down the economy and encourage growth. "The odds are that the Fed can pull off a soft landing for the economy," said Ryan Sweet, head of monetary policy research at Moody's Analytics. In the Vietnamese foreign exchange market, after the Fed’s interest rate hike, the central exchange rate was set by the State Bank of Vietnam (SBV) at VND22,785/USD, unchanged compared to the previous session on December 20. The VND/USD exchange rate in commercial banks even dropped sharply compared to … [Read more...] about Fed interest rate hike does not affect VND
Fed stimulus package
After Fed boost, global woes hit Wall Street
Wall Street's confidence has taken a hit after losses over the past week with investors fretting over the European and Chinese economies in the aftermath of the Federal Reserve's new stimulus package. Traders turned to some profit taking following a spectacular rally on the back of the Federal Reserve's decision to pump 600 billion dollars into the markets in a bid to boost the US economic recovery. Next week will see a slew of economic indicators that will once again offer investors a glimpse of the health of the US economy, including retail sales, consumer prices index, housing data and jobless claims. "The economy appears to have regained momentum early this quarter, but as the calendar heats up this week, the outlook for growth and inflation should become clearer," analysts of Moody's Economy.com said in a note. In the week to Friday, the Dow Jones Industrial Average fell 2.12 percent to 11,192.58, after the previous week's rally that say markets touch levels last seen in the days … [Read more...] about After Fed boost, global woes hit Wall Street
Dollar advances on US Fed monetary outlook
The dollar rose on Wednesday as upbeat US economic data strengthened prospects that expected US Federal Reserve monetary easing measures may be less aggressive than previously thought. In trading here, the dollar climbed to 81.89 yen from 81.43 late in New York on Tuesday, having pulled away from a 15-year low level of 80.41 that was struck on Monday. The European single currency meanwhile slid to $1.3809 from $1.3857 on Tuesday. Next week's Federal Open Market Committee meeting is expected to unveil new stimulus measures to boost the country's jobless recovery, dealers said. And the first estimate of third-quarter US gross domestic product, due on Friday, could play a key role in the central bank's decision on quantitative easing (QE) measures. "The US dollar regained some ground on the back of slightly better than expected consumer confidence and Richmond Fed numbers for October yesterday," said CMC Markets analyst Michael Hewson. "With US GDP numbers looming on Friday, … [Read more...] about Dollar advances on US Fed monetary outlook
Vietnam eyes higher US exports after stimulus plan
Many local manufacturers and exporters are happy to embrace the news of a new stimulus plan launched last week in the US, which they see as a chance to boost exports to the country at a time when trade with other markets is slowing down. The US remains the largest export market of Vietnam, with turnover in the year to date reaching nearly US$13 billion, an 18.2 percent year-on-year increase. With the Fed announcing last Thursday that it would pump $40 billion into the economy each month until the jobs market shows sustained improvement, Vietnamese exporters said shipments to the US will continue to increase in both volumes and values. … [Read more...] about Vietnam eyes higher US exports after stimulus plan
Gold, dollar slip further
Price of gold in Vietnam slipped by VND100,000 a tael (1.2 ounces) on June 20 while global price inched up on hopes that the US Federal Reserve would launch another round of quantitative easing to stimulate the world’s largest economy at its policy meeting today. Saigon Jewelry Company, Vietnam’s biggest gold processer and trader, bought the metal at VND42.02 million and sold at VND42.22 million as of 10.15am Vietnamese time. Hanoi-based Phu Quy Jewelry Company purchased SJC-brand gold at VND42.14 million and sold at VND42.24 million as of 10.30am Vietnamese time. Bao Tin Minh Chau Jewelry Company quoted price at VND40.8 million for buying, and at VND41.1 million for selling at 10.55am Vietnamese time. Domestically, gold fetched VND1.2-1.3 million a tael, higher than global price. On free market, the US dollar was bought at VND20,940 per dollar, and sold at VND20,960 per dollar, down VND10 per dollar over the previous day. Meanwhile, Vietcombank bought the greenback … [Read more...] about Gold, dollar slip further