Foreign exchange prices on May 21, 2025: USD slides after cautious statements from the Fed

Illustration photo. Photo: Internet

USD exchange rate on international market

The Dollar Index (DXY), which reflects the performance of the USD against a basket of six major currencies (EUR, JPY, GBP, CAD, SEK, CHF), closed at 100.01, down 0.42% from May 20, 2025.

The greenback's decline in the latest session was partly due to a more cautious stance from Fed officials on the economic outlook, as investors eye upcoming talks between the US and Japan that could include currency negotiations as part of a trade agreement.

According to Reuters, the wave of tariffs implemented by the Trump administration this year has caused investors to reduce their attachment to US assets after a long period of outstanding growth in this market. Although the USD has recorded a slight recovery recently due to expectations of a US-China trade truce, selling pressure has returned when Moody's downgraded the US national credit rating.

"In terms of valuation, the US dollar still has a lot of room to fall," said George Vessey, chief foreign exchange and macro strategist at payments firm Convera.

The dollar index (.DXY) has fallen 10.6% from its January peak, marking one of the steepest corrections in three months. Speculators now hold a net short position of $17.32 billion in the greenback, the lowest since July 2023, according to data from the U.S. Commodity Futures Trading Commission (CFTC).

Part of the reason for the widespread negative sentiment on the dollar is that the currency is overvalued—it traded 22% above its 20-year average in January. The DXY is still 10% above its long-term average, and a further 10% drop would take the dollar back to the lows seen during President Trump’s first term.

While experts and investors have long argued that the dollar is overvalued, bets on its decline have often failed because of the enduring strength of the U.S. economy. That picture, however, appears to be changing.

Steve Englander, head of global G10 foreign exchange research at Standard Chartered (New York), said that while recent trade deals may temporarily calm markets, they do not address the long-term confidence issues facing the US.

“The story of the weakening dollar is not over yet,” Mr. Englander said.

Investors are also concerned about the long-term fiscal situation in the US. According to analysts, President Trump's massive tax cut plan is likely to increase the current national debt of $36.2 trillion by $3,000 billion to $5,000 billion over the next decade.

Although the USD is under strong selling pressure, thanks to the previous year's rally, US assets are still being held on a scale of trillions of dollars, including stocks and government bonds.

According to investors, the wave of selling USD may spread further in many regions as investors are increasingly skeptical about the safe haven role of this currency - which has been significantly declining recently.

Domestic USD exchange rate

In the domestic market, at the beginning of the session on May 21, the State Bank adjusted the central exchange rate of the Vietnamese Dong to the USD down by 2 VND, currently listed at 24,968 VND.

The reference exchange rate announced by the State Bank of Vietnam also decreased slightly, currently at the buying - selling rate: 23,770 VND - 26,166 VND.

At Vietcombank , the USD exchange rate is currently 25,750 - 26,140 VND/USD, recording an increase of 20 VND in both buying and selling compared to the previous trading session.

VIB Bank is buying USD cash at the lowest price: 1 USD = 25,340 VND

VIB Bank currently applies the lowest USD transfer purchase rate: 1 USD = 25,400 VND

HSBC Bank is currently the unit with the highest USD cash purchase price: 1 USD = 25,829 VND

OCB Bank is leading in the highest USD transfer purchase price: 1 USD = 25,830 VND

VIB is the bank with the lowest USD cash selling price in the market, at: 1 USD = 25,760 VND

VIB also listed the lowest price for USD transfer sales, at: 1 USD = 25,760 VND

LPBank and OceanBank are offering the highest USD cash selling price: 1 USD = 26,190 VND

NCB Bank currently has the highest USD transfer price on the market: 1 USD = 26,175 VND

The EUR exchange rate at the State Bank of Vietnam increased slightly in both directions, currently at: 26,644 VND - 29,449 VND.

The Japanese Yen exchange rate at the State Bank of Vietnam remains unchanged from before, currently trading at: 164 VND - 181 VND.

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Source: https://doanhnghiepvn.vn/kinh-te/gia-ngoai-te-ngay-21-5-2025-usd-truot-doc-sau-cac-phat-bieu-than-trong-tu-fed/20250521083204624