USD exchange rate today (July 21): USD will maintain its recovery momentum...

USD exchange rate today: Early morning of July 21, the State Bank announced the central exchange rate of Vietnamese Dong to USD is currently at 25,185 VND.

The USD Index (DXY), which measures the greenback's performance against six major currencies, stood at 98.46.

Forecast of USD trend this week

This week, the USD is expected to recover or move sideways, as the US economy continues to show steady strength and global investors adjust their expectations for the US Federal Reserve's (Fed) monetary policy. The DXY is likely to maintain or increase slightly in the week from July 21 to July 27, targeting 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.

Chart of DXY Index fluctuations over the past week. Photo: Marketwatch

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 USD sell-off from the beginning of the year to mid-June. However, experts also warn that the outlook for the USD is not entirely solid. New US tax measures are increasingly attracting market attention. Tariffs reduce import demand, thereby reducing the demand for foreign currencies (such as euros or Japanese yen) to pay for goods, which leads to an increase in the USD in the short term, because the demand for the USD increases relatively compared to other currencies. In addition, the geopolitical situation, especially the escalating tensions in some regions, makes investors tend to seek the USD as a safe haven asset, thereby supporting the increase in the value of the USD 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.

This week is expected to be a relatively cautious period for the USD in the international market. The internal strength of the US economy will be the main supporting factor, but risks related to trade policy, politics and economic data will continue to affect the direction of the USD.

Illustration photo: mekongasean.vn

Domestic USD exchange rate today

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: