Foreign exchange rates today, July 21: USD Index at 98.46

Early morning of July 21, the State Bank announced the central exchange rate of the Vietnamese Dong against the USD at 25,185 VND. The USD Index (DXY), which measures the greenback's fluctuations against 6 major currencies, stood at 98.46.

This week, the USD is expected to recover or move sideways, as the US economy continues to show stable strength and global investors adjust their expectations about the US Federal Reserve's (Fed) monetary policy.

DXY is likely to maintain or slightly increase in the week of July 21-27 with a target of 98.7 - 99.0, supported by positive US economic data and the safe-haven role of the USD. However, risks from tariff policies and geopolitical tensions remain factors that could cause the greenback to face unexpected fluctuations in the short term.

Previously, expectations that the Fed would cut interest rates in September had put downward pressure on the USD. However, with recent positive economic indicators, many analysts have begun to adjust their views and believe that the USD has returned to its "safe haven asset function".

The greenback may continue to receive support from high US government bond yields, while market sentiment is gradually stabilizing after a period of strong dollar sell-off from the beginning of the year to mid-June. However, experts also warn that the outlook for the dollar is not entirely solid. New US tax measures are increasingly attracting market attention.

Foreign exchange rates today 217 USD Index at 9846

Tariffs reduce the demand for imports, thereby reducing the need for foreign currencies (such as euros or Japanese yen) to pay for goods, which leads to a short-term appreciation of the USD, as the demand for the USD increases relative to other currencies. In addition, geopolitical situations, especially escalating tensions in some regions, tend to make investors seek the USD as a safe haven asset, thereby supporting the value of the USD to increase in the short term.

The USD may recover slightly at the beginning of the week thanks to support from positive macro data and the Fed's steadfast stance. However, as we enter the middle and end of the week, the greenback will face correction pressure if there is unfavorable information related to trade policy, weaker-than-expected economic data or unexpected statements from the White House related to monetary policy and tariffs.

In the domestic market, at the beginning of the trading session on July 21, the State Bank announced the central exchange rate of the Vietnamese Dong against the USD at 25,185 VND.

The reference USD exchange rate at the State Bank's transaction office for buying and selling is kept at: 23,976 VND - 26,394 VND.

USD exchange rates at commercial banks are as follows:

Vietcombank buys 25,950 VND; sells 26,340 VND

Vietinbank buys 25,825 VND; sells 26,335 VND

BIDV buys 25,980 VND; sells 26,340 VND

Source: https://baolamdong.vn/ty-gia-ngoai-te-hom-nay-21-7-chi-so-usd-index-o-muc-98-46-383025.html