The DXY index has fallen sharply over the past week, reflecting the greenback’s weakness amid economic uncertainty and U.S. trade policy. President Donald Trump’s continued push for tariffs and the possibility of withdrawing from international organizations such as the IMF have raised concerns about the dollar’s status as a safe haven asset.
The DXY is facing a key resistance zone at 105.5. If it fails to clear this level decisively, the USD could correct lower towards the support zones at 104.7 and further to 104.2, where fresh buying pressure could be triggered.
If the USD breaks above 105.5, it will have a chance to retest the old highs around 106.2 next week. Further upside momentum depends largely on the speeches of Fed officials and important economic data such as the employment report or the consumer price index (CPI) released this week.
More than 55% of foreign exchange strategists said they were concerned about the dollar’s safe-haven status, up from a month ago, according to a Reuters poll. Uncertainty over the Trump administration’s trade and fiscal policies has dented investor confidence in the greenback.
International investors, particularly from Canada, Japan and Germany, are reconsidering their currency hedging exposure to the US dollar, as hedging costs rise due to higher US interest rates. This could lead to reduced demand for US assets, putting downward pressure on the dollar.
At the same time, controversial policy proposals from the Trump administration, such as the possibility of withdrawing from the International Monetary Fund (IMF), have raised concerns about the US dollar’s status as a safe haven asset. Withdrawing from the IMF could weaken the US dollar’s role as a global reserve currency, leading to instability in international financial markets.
The euro (EUR) and the British pound (GBP) are under pressure due to the monetary easing policies of the European Central Bank (ECB) and the Bank of England (BoE), along with domestic political uncertainties. Meanwhile, the Japanese yen (JPY) shows an upward trend due to expectations that the Bank of Japan (BOJ) will adjust its monetary policy towards normalization.
EUR/USD may fluctuate in a range of 1.1–1.15 in the short term. Meanwhile, GBP/USD may maintain support around 1.25 and resistance at 1.3. USD/JPY may continue to decline to 142–145 if the BOJ signals a stronger policy tightening. Conversely, if the USD continues to be supported by high Fed interest rates, the pair may recover to 150.
In the domestic market, at the beginning of the trading session on June 2, the State Bank announced the central exchange rate of the Vietnamese Dong against the USD at 24,978 VND.
The reference exchange rate at the State Bank's transaction office for buying and selling remains at: 23,780 VND - 26,176 VND.
USD exchange rates at commercial banks are as follows:
Vietcombank buys 25,810 VND; sells 26,200 VND
Vietinbank buys 25,700 VND; sells 26,210 VND
BIDV buys 25,840 VND; sells 26,200 VND
Source: https://baodaknong.vn/ty-gia-ngoai-te-hom-nay-2-6-chi-so-usd-index-dung-o-muc-99-44-254329.html
Comment (0)