USD exchange rate today (August 27): USD reverses to decrease

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 0.22%, currently at 98.21.

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

USD exchange rate today in the world

The US dollar fell against major currencies on Tuesday after US President Donald Trump fired Federal Reserve Governor Lisa Cook, raising concerns about the independence of the US central bank.

The euro rose 0.22% against the dollar to $1.1647, while the pound rose 0.2% to $1.3481. Against the Japanese yen, the dollar fell 0.27% to 147.36 yen, while it lost 0.28% against the Swiss franc to 0.8032.

The surprise announcement from Mr. Trump sent shockwaves through the market, but the overall reaction was quite reserved, as investors were torn between concerns about the politicization of monetary policy and the possibility that this move would benefit the market.

“Investor activity remains subdued, with the focus on the fallout from Jackson Hole and reports of a growing threat to Fed Governor Cook and the Fed’s independence in general,” said Uto Shinohara, senior investment strategist at Mesirow Currency Management. He said the Trump administration’s unpredictable actions and expectations of a more dovish Fed have kept the dollar from rising.

Markets were little changed after data showed U.S. manufacturing output rose more than expected last month, while consumer confidence fell slightly in August.

Traders are now pricing in an 85% chance of a rate cut at the Fed’s September meeting, according to CME’s FedWatch tool. Morgan Stanley also became the latest brokerage to predict a rate cut next month, joining global institutions after Powell signaled a dovish tone in his speech last week.

“Monetary easing expectations remain steady, with the latest Conference Board report showing that U.S. households are more concerned about jobs and incomes, though they are more optimistic about the business outlook,” said Karl Schamotta, chief strategist at Corpay in Toronto. “With the Fed shifting its focus from inflation to the labor market, these numbers reinforce market expectations for at least two rate cuts this year, putting pressure on the dollar,” he added.

However, Kenneth Broux, head of foreign exchange and corporate rates research at Societe Generale, warned that while investors were likely to sell the dollar, economic and fiscal concerns in Europe also limited alternatives to the greenback.

The USD reversed and decreased. Photo: vneconomy.vn

Domestic USD exchange rate today

In the domestic market, at the beginning of the trading session on August 27, the State Bank announced the central exchange rate of the Vietnamese Dong against the USD at 25,273 VND.

* The reference USD exchange rate at the State Bank's buying and selling exchange center has decreased, currently at: 24,060 VND - 26,550 VND.

USD exchange rates at commercial banks are as follows: