Foreign exchange rates on May 20, 2025: USD plunges due to escalating trade tensions

DNVN - USD fell sharply in the trading session on May 20, 2025 as global trade tensions continued to increase, putting the greenback at a disadvantage.

USD exchange rate on international market

Illustration photo. Photo: Internet

The Dollar Index (DXY), which measures the strength of the USD against six major currencies including EUR, JPY, GBP, CAD, SEK and CHF, closed at 100.26 points, down 0.72 points compared to May 19, 2025.

Amid escalating trade tensions, the US dollar has fallen sharply, falling to its lowest level in more than a week against the Japanese yen, Swiss franc and euro – currencies considered safe havens.

US Treasury Secretary Scott Bessent said in television interviews on Sunday that President Donald Trump would proceed with his previously announced tariffs on countries that do not negotiate in “good faith.” But the real driver of the dollar’s ​​decline was Moody’s downgrade of the US credit rating on Friday, citing concerns about a national debt that has surpassed $36 trillion.

Moody's move is seen as a follow-up to similar decisions from Fitch in the summer of 2023 and S&P in 2011.

News of the credit downgrade sent the dollar sharply lower against many major currencies, marking the end of a four-week streak of gains on hopes of new trade agreements between the US and its partners, especially after signs of improvement in relations with China.

“Credit ratings are very important, and the downgrade so early shows that analysts and economists are pessimistic about the impact of the new trade policy. The current financial environment is still cautious, turbulent and tends to ‘sell US assets’. The downgrade will exacerbate this trend, dragging down the value of the USD,” commented Juan Perez, director of trading at Monex USA, based in Washington.

Despite the greenback being under pressure, New York Federal Reserve President John Williams said there were no signs of large capital outflows from US assets, and stressed that the central role of the USD in the global monetary system remains.

In response, China has called on the US to adopt more responsible policies to ensure the stability of the global economic and financial system and protect investors’ interests. The call follows Mr. Bessent’s tough statement on Sunday aimed at countries that do not engage in serious trade cooperation with the US.

However, a report in the Financial Times revealed that Washington had restarted constructive trade talks with the European Union, a move that helped ease market concerns. These talks are opening up hopes of additional agreements, following the framework of cooperation signed with the UK earlier this month.

Meanwhile, the Australian dollar rose 0.66% to $0.6444 after three consecutive sessions of declines, amid market expectations that the Reserve Bank of Australia will cut interest rates by another 0.25 percentage points at its meeting on Tuesday. The New Zealand dollar also recovered 0.5% to $0.5911.

Domestic USD exchange rate

In the domestic market on the morning of May 20, the State Bank adjusted the central exchange rate of Vietnamese Dong to USD by 10 VND, bringing the announced rate to 24,970 VND.

The reference exchange rates listed at the State Bank of Vietnam tend to increase slightly in both buying and selling directions, at 23,772 VND and 26,168 VND, respectively.

Recorded at Vietcombank , the USD price is at 25,730 VND for buying and 26,120 VND for selling, both up 10 VND compared to the previous session.

VIB is currently the bank with the lowest USD cash purchase price in the market, at 25,340 VND for each USD.

The lowest USD transfer purchase price also belongs to VIB, at 25,400 VND per USD.

HSBC is leading in the highest USD cash buying price, reaching 25,804 VND/USD.

OCB recorded the highest USD transfer buying price in the market, reaching 25,810 VND/USD.

VIB is also applying the lowest USD cash selling price in the market, at 25,760 VND.

Similarly, the lowest USD transfer price listed by VIB is 25,760 VND.

Saigonbank is listing the highest USD cash selling price, at 26,200 VND.

NCB currently has the highest USD transfer selling price, reaching 26,175 VND.

For EUR, the exchange rate at the State Bank of Vietnam slightly decreased, currently trading at the buying - selling rate of 26,549 VND - 29,344 VND.

The Japanese yen exchange rate at the State Bank of Vietnam increased slightly, with the buying and selling rates being 164 VND - 181 VND.

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Source: https://doanhnghiepvn.vn/kinh-te/ty-gia-ngoai-te-ngay-20-5-2025-usd-lao-doc-do-cang-thang-thuong-mai-leo-thang/20250520081200215