# Fed’s foreseen rate cuts affect foreign exchange rate

> The Fed signaled only two rate cuts in 2025, prompting the dollar index to near 108, its highest in a year. The dong's interbank rate rose past the State Bank's intervention price to 25,453 per dollar, up nearly 5% year to date.

- Date: 2024-12-23 · published 2024-12-23T12:00:00.000Z
- Category: macro · region Vietnam · magnitude low
- Page: https://feedsoft.ai/events/27264-fed-s-foreseen-rate-cuts-affect-foreign-exchange-rate
- Commodities: [Vietnamese Dong (VND per USD)](https://feedsoft.ai/c/USDVND.md), [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md)

## Why it matters

Higher-for-longer US rates strengthen the dollar and push up dong-denominated import costs for feed ingredients, a modest bullish pressure on dollar-priced commodities.

## Read by commodity

- DXY: bullish ▲
- USDVND: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| DXY | 2019-09-21 | [Foreign exchange rate 22.9: Fed cuts interest rates, USD increases, should we sell for profit?](https://feedsoft.ai/events/57358-foreign-exchange-rate-22-9-fed-cuts-interest-rates-usd-increases-should-we-sell.md) | +0.5% | -1.0% |
| DXY | 2024-02-20 | [Foreign exchange rate forecast to be under control in 2024](https://feedsoft.ai/events/31997-foreign-exchange-rate-forecast-to-be-under-control-in-2024.md) | -0.1% | -0.5% |
| DXY | 2021-10-21 | [Foreign Exchange Rate Forecasts For Next 6-12 Months From Danske Bank](https://feedsoft.ai/events/7485-foreign-exchange-rate-forecasts-for-next-6-12-months-from-danske-bank.md) | +0.1% | +1.4% |
| DXY | 2025-03-20 | [EUR/USD weakens as Fed sees no rush for interest rate cuts](https://feedsoft.ai/events/25794-eur-usd-weakens-as-fed-sees-no-rush-for-interest-rate-cuts.md) | +0.3% | -2.0% |
| DXY | 2024-02-03 | [VND/USD exchange rate expected to rise following Fed decision](https://feedsoft.ai/events/32002-vnd-usd-exchange-rate-expected-to-rise-following-fed-decision.md) | +0.1% | -0.0% |

## Sources

- vietnamnews.vn: https://vietnamnews.vn/economy/1689490/fed-s-foreseen-rate-cuts-affect-foreign-exchange-rate.html

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.