The USD Index (DXY), which measures the greenback's performance against six major currencies, stood at 104.23, up 1.00%.

Forecast of USD trend this week

The US dollar continued to rally strongly last week as expected. The DXY index held well above 103 and closed the week above 104, marking its third consecutive weekly gain. The upward momentum could continue well into the future.

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

Last week, US Treasury yields rose sharply, continuing to support the greenback.

The DXY rally to 105 that was mentioned last week is playing out as expected. Support for the greenback next week is at 103.50. The DXY is likely to test 105 this week. A strong breakout above 105 would establish a bullish bias towards 106 in the coming weeks. Therefore, price action around 106 will be crucial in determining the direction of the USD in the future.

Meanwhile, the euro has fallen to 1.07, hitting a low of 1.0702 and has since recovered slightly. The euro needs to hold above 1.07 to regain momentum, possibly reaching 1.08 or 1.09 in the near term. However, it is unlikely that the currency will rise further above 1.09.

So, from a big picture perspective, the Euro is likely to remain below 1.09 and eventually break 1.07. Such a break would take the Euro down to 1.05 in the medium term.

USD exchange rate today May 29: Will the USD continue to increase? Illustration photo: Reuters.

Domestic USD exchange rate today

In the domestic market, at the end of the trading session on May 26, the State Bank announced the central exchange rate of the Vietnamese Dong to the USD increased by 15 VND, currently at: 23,711 VND.

* The reference exchange rate at the State Bank's transaction office increased slightly, currently at: 23,400 VND - 24,846 VND.

USD exchange rates at commercial banks are as follows:

USD exchange rate

Buy

Sell

Vietcombank

23,320 VND

23,660 VND

Vietinbank

23,272 VND

23,692 VND

BIDV

23,330 VND

23,630 VND

* The Euro exchange rate at the State Bank's exchange office for buying and selling slightly decreased to: 24,163 VND - 26,707 VND.

Euro exchange rates at commercial banks are as follows:

Euro exchange rate

Buy

Sell

Vietcombank

24,789 VND

25,915 VND

Vietinbank

24,318 VND

25,608 VND

BIDV

24,802 VND

25,917 VND

MINH ANH