USD exchange rate today (May 14): USD falls after inflation data

Meanwhile, in the US market, the US Dollar Index (DXY) measuring the greenback's fluctuations against six major currencies (EUR, JPY, GBP, CAD, SEK, CHF) decreased by 0.86% to 100.93.

USD exchange rate today in the world

The US dollar fell in the last trading session, after newly released data showed that US consumer inflation in April increased less than expected, after President Donald Trump announced a series of tariff policies.

The US and China said earlier this week they would pause their trade war for 90 days, reduce tariffs and negotiate a longer-term deal.

DXY Index volatility chart over the past 24 hours. Photo: Marketwatch

The deal boosted investor demand for stocks, cryptocurrencies and commodities, while newly released inflation data also provided a boost to risk assets.

The U.S. Consumer Price Index rose 0.2 percent in April, bringing the annual increase to 2.3 percent from 2.4 percent, the Bureau of Labor Statistics said. Economists polled by Reuters had forecast a 0.3 percent monthly increase and a 2.4 percent annual increase.

The report is good news, said Bill Adams, chief economist at Comerica Bank in Dallas. Inflation will be under control for most consumers and businesses by 2025.

The US dollar fell back after rising sharply in the previous session following inflation data.

In an opposite direction, the EUR increased by 0.94% to 1.1191 USD.

“The report basically says that the Fed needs to be very cautious and the stance they have taken is probably the right one for now,” said Peter Cardillo, chief market economist at Spartan Capital in New York.

After talks in Geneva over the weekend, the US said it would cut tariffs on imports from China from 145% to 30%, while China said it would cut tariffs on imports from the US from 125% to 10%.

The shift in US-China trade relations has led traders to reduce their expectations for a Fed rate cut.

Traders are now pricing in a total of 56 basis points of rate cuts this year, down from a forecast of more than 100 basis points in April.

While the 90-day tariff pause is welcome, it doesn't change the big picture, economists and analysts say.

“When all is said and done, tariffs will still be significantly higher and will weigh on US growth,” said Christopher Hodge, chief US economist at Natixis.

The yield on the benchmark 10-year U.S. Treasury note rose 1.6 basis points to 4.473 percent; the yield on the two-year note, which typically moves in line with Fed rate expectations, also rose 0.2 basis points to 4.004 percent.

USD exchange rate today, May 14: USD decreased after inflation data. Photo: Reuters

USD exchange rate today in the country

In the domestic market, at the beginning of the trading session on May 14, the State Bank announced the central exchange rate of the Vietnamese Dong against the USD increased by 28 VND, currently at 24,973 VND.

* The reference exchange rate at the State Bank's transaction office increased slightly, currently at: 23,775 VND - 26,171 VND.

USD exchange rates at commercial banks are as follows: