USD exchange rate today (August 28): USD maintains upward momentum

USD exchange rate today: Early morning of August 28, the State Bank announced the central exchange rate of Vietnamese Dong to USD is currently at 25,273 VND.

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 0.04%, currently at 98.18.

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

USD exchange rate today in the world

The dollar held on to gains against the euro and yen on Wednesday, paring much of its early gains as investors focused on upcoming U.S. economic data for policy clues amid lingering concerns about the independence of the Federal Reserve.

The euro hit its lowest since Aug. 6, down 0.09 percent to $1.1631. The pound edged up 0.12 percent to $1.3496, while the greenback fell 0.14 percent against the Swiss franc and was flat against the Japanese yen at 147.445 yen.

“Traders are largely in a wait-and-see mode as we look ahead to Nvidia’s earnings report today and PCE core inflation data on Friday,” said Michael Boutros, senior technical strategist at StoneX. “They are unlikely to want to open large positions until those numbers are released,” he added.

New York Fed President John Williams said Wednesday that interest rates are likely to fall at some point, but policymakers need to see what incoming data says about the economy to decide whether a cut is appropriate at their September meeting.

While the dollar appeared to have escaped the direct impact of concerns about the Fed’s independence after President Donald Trump on Monday sought to fire Governor Lisa Cook, the yield curve on U.S. Treasury bonds has steepened. Cook’s lawyer later said she would sue to block her removal, opening the possibility of a lengthy legal battle.

“I don’t think the market is too concerned about the noise around Cook and the Fed. What they’re more concerned about is Trump’s rhetoric about wanting lower rates,” said Joseph Trevisani, senior analyst at FX Street. “If the Fed starts cutting rates, it will boost the U.S. economy, and that will ultimately support the dollar.”

Since returning to the White House earlier this year, Mr. Trump has repeatedly pressured the Fed to lower interest rates.

According to CME's FedWatch tool, money markets are currently pricing in an 87.2% chance that the Fed will cut interest rates by 25 basis points at its September meeting.

Next week, investors will be watching US labor market data and business surveys for further clues on the Fed’s policy direction. They will also be looking ahead to the US personal consumption expenditure (PCE) index report due later this week. “If the data comes in as expected, I am almost certain the Fed will act (cut interest rates),” said Joseph Trevisani.

Illustration: vnbusiness.vn — Illustration photo: vnbusiness.vn

Domestic USD exchange rate today

In the domestic market, at the beginning of the trading session on August 28, the State Bank announced the central exchange rate of the Vietnamese Dong to the USD at 25,273 VND.

* The reference USD exchange rate at the State Bank's transaction office for buying and selling is currently at: 24,060 VND - 26,486 VND.

USD exchange rates at commercial banks are as follows: