USD approaches important milestone

The USD Index (DXY), which measures the greenback's performance against six major currencies, stood at 102.71, marking a weekly gain of 1.47%.

Forecast of USD trend this week

The US dollar rose sharply late last week. Growing risk aversion in the market and the US debt ceiling increase supported the greenback's rise. The DXY index rose 1.45% last week, closing at 102.68, near the top of the 101-103 range.

Chart of DXY Index fluctuations over the past week. Photo: Marketwatch.

Concerns over the US debt ceiling overshadowed the impact of last week’s inflation data. The US Consumer Price Index (CPI) continued to show signs of cooling. The US CPI rose 4.96% in April, down from 4.99% in March. This has raised market expectations that the US Federal Reserve (Fed) will pause its interest rate hikes.

Meanwhile, the euro fell sharply and broke below key support at 1.09. The currency fell 1.54% over the past week, closing at 1.0849.

As can be seen, the DXY and the Euro are getting closer to important trend-determining levels. The 103 level for the DXY and 1.08-1.0780 for the Euro are the important levels to watch this week.

The euro could fall to 1.08-1.0780 this week. That could push the DXY index to the important 103 level. If the dollar rises above 103, it will continue to rise to 104.

Conversely, if the euro rebounds from around 1.08, it could rise back to 1.09 and 1.10, which would mean the DXY Index would fall from 103 to 102, or even 101.

USD exchange rate today, May 15: USD approaches important milestone. Illustration photo: Reuters.

Domestic USD exchange rate today

In the domestic market, at the end of the trading session on May 12, the State Bank announced the central exchange rate of the Vietnamese Dong to the USD increased by 8 VND, currently at: 23,640 VND.

* The reference exchange rate at the State Bank's transaction office increased, currently at: 23,450 VND - 24,772 VND.

USD exchange rates at commercial banks are as follows: