USD exchange rate today (June 19): Will the USD continue to slide?

USD exchange rate today (June 19): Early morning of June 19, the State Bank announced the central exchange rate of Vietnamese Dong to USD is currently at: 23,711 VND.

The USD Index (DXY), which measures the greenback's movements against six major currencies, stood at 102.30, down 1.21%.

Forecast of USD exchange rate trend this week

The US dollar came under strong downward pressure last week. As a result, the short-term outlook has turned bearish for the greenback.

DXY Index volatility chart over the past week. Photo: Marketwatch.

The US Federal Reserve (Fed) decided to keep interest rates unchanged at its policy meeting last week, maintaining them in the range of 5-5.25%, as expected by the market. However, the Fed also hinted that it would raise interest rates by another 50 basis points by the end of the year. Therefore, the Fed may conduct two more 25-bps rate hikes this year. The federal funds rate is expected to peak at 5.6% this year. This is up from the estimate of 5.1% in the last set of forecasts released in March. Traders are now betting on a 70% chance that the Fed will raise interest rates again next month after skipping a rate hike in June.

While the Fed opted for a pause after 10 consecutive rate hikes, the European Central Bank (ECB) did the opposite. The ECB raised its policy rate by 25 basis points last week. The ECB's move accelerated the euro's rally, while also pulling the DXY index below the key 103 level last week.

The sharp drop below 103 is likely to put further pressure on the DXY this week. Resistance is currently in the 103-103.50 zone. The short-term outlook is bearish. Current support is at 102. The DXY could break below 102 and fall straight to the 101-100.50 zone in the coming days.

On the other hand, the euro rallied strongly last week and closed above the key 1.09 level. The key support now lies in the 1.0870-1.0850 area. As long as the currency holds above this support zone, the short-term outlook is bullish. The euro is likely to target 1.11-1.1135 in the coming weeks.

USD exchange rate today June 19: Will the USD continue to slide? Illustration photo: Reuters.

Domestic USD exchange rate today

In the domestic market, at the end of the trading session on June 16, the State Bank announced the central exchange rate of the Vietnamese Dong against the USD increased by 7 VND, currently at: 23,711 VND.

* The reference exchange rate at the State Bank's buying and selling exchange center increased slightly, currently at: 23,400 VND - 24,846 VND.

USD exchange rates at commercial banks for buying and selling are as follows: