USD exchange rate today (June 27): USD falls to lowest level in...

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 0.37% to 97.32.

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

USD exchange rate today in the world

The dollar fell to a three-and-a-half-year low against the euro and sterling amid a sharp sell-off as traders re-priced the likelihood of a larger-than-expected interest rate cut by the US Federal Reserve.

"This week, all eyes are on the Fed, on the prospect of earlier easing and the possibility of more rate cuts," said Eric Theoret, foreign exchange strategist at Scotiabank in Toronto.

Fed Chairman Jerome Powell was widely seen as taking a more dovish tone in his testimony before Congress this week. He reiterated his expectation that inflation would pick up again in the summer, but said that if price pressures remained contained, “we would move to a rate cut sooner,” Powell said.

Powell appears to have opened the door to a rate cut as early as July, according to Noel Dixon, global macro strategist at State Street Global Markets. If the upcoming consumer inflation numbers come in below market expectations, “I think the market will start to price in a rate cut in July,” Dixon said.

Traders of federal funds futures are now pricing in a 23% chance of a July rate cut, up from 13% last week, and a 93% chance of a September cut, according to CME Group's FedWatch tool. In total, the market expects the Fed to cut a total of 66 basis points by year-end, or three 25-point cuts, up from 46 basis points last Friday.

US President Donald Trump is expected to nominate a new Fed chairman next year - someone expected to be more dovish than Mr Powell, whose term ends in May next year.

In the currency market, the USD fell 0.72% against the Japanese yen, down to 144.2 JPY/USD.

The EUR rose 0.51% to $1.1719 and hit a peak of $1.1744 - its highest since September 2021.

The pound rose 0.62% to $1.3748, at one point reaching $1.3770 - the highest since October 2021.

The Swiss franc hit a 10-and-a-half-year high of $0.799 per franc.

Investors are also closely watching the Trump administration's self-imposed July 9 deadline to negotiate bilateral trade deals to avoid tit-for-tat tariffs with trading partners.

The US Congress is also working on a budget and tax bill, which the Senate aims to pass before July 4.

Noel Dixon said the dollar could be supported if the fiscal stimulus from the bill boosts growth and reduces the deficit-to-GDP ratio. However, he noted that in the meantime, the budget and current account deficits will continue to be a negative factor for the dollar.

In the long term, the USD is also under pressure as international investors reallocate their portfolios and withdraw capital from USD-denominated assets due to concerns about the US economic outlook and the value of this currency.

Illustration photo / Reuters.

Domestic USD exchange rate today

In the domestic market, at the beginning of the trading session on June 27, the State Bank announced the central exchange rate of the Vietnamese Dong against the USD at 25,053 VND.

* The reference USD exchange rate at the State Bank's buying and selling exchange center has slightly decreased, currently at: 23,851 VND - 26,255 VND.

USD exchange rates at commercial banks are as follows: