USD exchange rate today (August 20): USD fluctuates in opposite directions

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) increased by 0.11%, currently at 98.28.

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

USD exchange rate today in the world

The US dollar recorded mixed movements in the trading session on Tuesday, as investors turned their attention to the US Federal Reserve's Jackson Hole Economic Policy Conference taking place this weekend, looking for further signals on the direction of US interest rates.

The market focus this week will be on a speech by Fed Chairman Jerome Powell on Friday, in the absence of major economic data that could provide clear direction for trading. Investors are waiting to see if Powell will counter market expectations for a rate cut in September.

Traders have increased bets on a rate cut at the Fed’s September 16-17 meeting after a disappointing July jobs report and consumer inflation data showed limited pressure from tariffs. However, a stronger-than-expected July producer price index (PPI) somewhat tempered expectations for a cut. Powell had also struck a cautious tone, saying that summer inflation could rebound due to the impact of tariffs.

“Last week, when the market was pricing in around 25 basis points for September and more than two cuts for the rest of the year, the risk was that Powell’s speech would disappoint those expectations if he did not explicitly state a rate cut in September,” said Vassili Serebriakov, a foreign exchange and macro strategist at UBS in New York.

“But now, with the market pricing in only about 20 basis points in September and more than 50 basis points for the year, I think the risks are much more balanced,” Serebriakov added. Investors are now pricing in a total of 54 basis points of rate cuts by the end of the year.

Minutes from the July 29-30 Fed meeting will be released on Wednesday, but are not expected to provide many important clues, as the meeting took place before the weak July jobs data.

Data released Tuesday showed U.S. building permits and single-family home starts rose in July, even as high mortgage rates and economic uncertainty continued to curb demand for homes.

The US dollar fell 0.22% to 147.54 yen against the Japanese yen. The performance of currencies in recent weeks has been quiet, following the sharp decline of the US dollar in the first half of the year.

The forex market has seen a period of risk-off over the summer, and now investors are waiting for a clearer catalyst to determine the next direction, according to Vassili Serebriakov.

In other currency markets, the pound fell 0.16 percent to $1.348, while the Australian dollar fell 0.62 percent to $0.6451, its lowest since August 5.

Traders are also closely watching developments in peace talks to end the Russia-Ukraine war. US President Donald Trump said on Tuesday he hoped Russian President Vladimir Putin would push to end the conflict, but acknowledged the Kremlin leader may not want to reach a deal, which he said would create a “difficult situation” for Putin himself.

Domestic USD exchange rate today

In the domestic market, at the beginning of the trading session on August 20, the State Bank announced the central exchange rate of the Vietnamese Dong against the USD at 25,255 VND.

* The reference USD exchange rate at the State Bank's buying and selling exchange center increased, currently at: 24,043 VND - 26,467 VND.

USD exchange rates at commercial banks are as follows: