USD exchange rate today (June 26): USD drops to lowest level...

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 0.14% to 97.72.

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

USD exchange rate today in the world

The dollar fell to multi-year lows against the euro and sterling, but rose against the yen as traders assessed expectations of a Federal Reserve interest rate cut and turned their focus back to US fiscal policy.

Currency market volatility was relatively mild after the greenback fell sharply following a ceasefire deal between Israel and Iran.

The US dollar had rallied last week on concerns about escalating tensions in the Middle East, but then quickly plunged this week.

“The market is waiting for a new theme,” said Steve Englander, head of G-10 global FX research and North America macro strategist at Standard Chartered.

The dollar also weakened on growing expectations that the Fed will cut interest rates further this year.

In his second day of testimony before the US Congress , Fed Chairman Jerome Powell reiterated on Wednesday that the central bank should keep interest rates unchanged, expecting that tariffs imposed by the Trump administration will increase inflation.

Earlier on Tuesday, Mr. Powell said that without these tariffs, the Fed might have continued to cut interest rates.

The market paid close attention to that statement, Mr. Englander said, because it was more dovish than what he said at the Fed's policy meeting last week. "We're seeing the market push up the odds of a rate cut," Mr. Englander said.

The likelihood of a rate cut also increased after two Fed officials, Michelle Bowman and Christopher Waller, both recently said the central bank should cut rates soon.

Fed rate futures traders are now pricing in a total of 62 basis points of cuts by the end of the year, up from around 46 basis points last Friday — before Waller’s comments. The first cut is now fully priced in for September.

Investors are also turning their attention back to trade talks ahead of the Trump administration's self-imposed July 9 deadline to reach trade deals and avoid reciprocal tariffs with partners.

Englander said it was likely that the deadline would be extended to avoid market volatility, as Congress is also working on a tax and spending bill around that time. If the tax moratorium is extended, it would be positive for risk assets and could put some downward pressure on the dollar.

The dollar rose 0.18% to 145.17 yen.

The EUR rose 0.43% to $1.1658, its highest since October 2021.

The pound rose 0.33% to $1.3659, its highest since January 2022.

The Swiss franc held near a 10-1/2-year high, trading at $0.804.

Illustration photo / cafef.vn

Domestic USD exchange rate today

In the domestic market, at the beginning of the trading session on June 26, the State Bank announced the central exchange rate of the Vietnamese Dong against the USD at 25,055 VND.

* The reference USD exchange rate at the State Bank's buying and selling exchange center has slightly decreased, currently at: 23,853 VND - 26,257 VND.

USD exchange rates at commercial banks are as follows: