The US dollar increased sharply across the board.

Meanwhile, in the US market, the US Dollar Index (DXY) measuring the greenback's fluctuations against six major currencies (EUR, JPY, GBP, CAD, SEK, CHF) increased by 0.64%, reaching 103.52.

USD exchange rate in the world today

The US dollar rose to a seven-week high in the previous session, boosted by expectations of a US debt ceiling deal that would avert a default.

DXY Index volatility chart over the past 24 hours. Photo: Marketwatch.

Asked by reporters at the Capitol about the possibility of reaching a debt ceiling deal by the time Mr. Biden returns from his trip to Asia, Republican House Speaker Kevin McCarthy said: “It can be done. We are on an accelerated schedule. It will be more difficult, but I never give up and we will get it done.” Mr. Kevin McCarthy also expressed his expectation of a bill to raise the $31.4 trillion debt ceiling next week.

Previously, on May 17, US President Joe Biden and US House Speaker Kevin McCarthy announced that both sides wanted to reach an agreement by May 21 to raise the federal government's debt ceiling, currently at 31.4 trillion USD, and avoid a catastrophic economic default.

In addition to debt ceiling negotiations, investors also looked at U.S. economic data, which has reflected the strength of the economy in recent weeks. Reports on May 18 showed that initial U.S. jobless claims fell to 242,000 last week, lower than the forecast of 254,000.

A series of better-than-expected data, coupled with hawkish views from Fed officials, have fueled expectations for further rate hikes, said Karl Schamotta, chief market strategist at Corpay in Toronto, Canada.

Markets have priced in about a 33% chance of the Fed raising rates by 25 basis points at its June meeting. Previously, markets had priced in about a 20% chance of a rate cut in June.

Fed officials on May 18 also opposed pausing interest rate hikes next month, citing persistently high inflation. Specifically, Dallas Fed President Lorie Logan said on Thursday that she was concerned that inflation was still “too high”, which would not allow the Fed to pause its rate hike campaign in June.

Against the Japanese yen, the dollar rose 0.7 percent to a six-month high of 138.74.

USD exchange rate today (May 19): USD increased strongly across the board. Illustration photo: Reuters.

Domestic USD exchange rate today

In the domestic market, at the end of the trading session on May 18, the State Bank announced the central exchange rate of the Vietnamese Dong against the USD increased sharply by 16 VND, currently at: 23,672 VND.

* The reference exchange rate at the State Bank's buying and selling exchange center increased slightly, currently at: 23,400 VND - 24,805 VND.

USD exchange rates at commercial banks for buying and selling are as follows: