USD exchange rate today (June 4): USD establishes weekly decline after many strong increases

USD exchange rate today (June 4): Early morning of June 4, the State Bank announced the central exchange rate of the Vietnamese Dong to the USD increased by 11 VND, currently at: 23,722 VND.

USD exchange rate in the world last week

The USD Index (DXY), which measures the greenback's performance against six major currencies, stood at 104.04, down 0.16%.

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

The dollar edged up 0.06% to 104.27 in early trading on Monday, after falling slightly earlier in the session as the US debt ceiling deal boosted risk appetite in global markets and dented the greenback's safe-haven appeal. Data released late last week also showed US consumer spending rose more than expected in April and inflation picked up. Money markets are pricing in a 62% chance of the Federal Reserve raising interest rates by 25 basis points in June, up from 26% last week.

The next day, the DXY index turned down, as US President Joe Biden and House Speaker Kevin McCarthy reached an agreement to temporarily remove the debt limit and cut some federal government spending for two years to prevent the government from defaulting.

The greenback rebounded slightly to 104.23 on June 1, as a Fed official stressed that even if the central bank keeps interest rates unchanged, it does not mean the Fed is done tightening monetary policy. While a possible resolution to the US debt ceiling is likely to send the greenback higher, an eventual deal could open the way for investors to seek riskier assets, given the fact that the US economy is about to stabilize.

However, the dollar again saw its biggest daily decline in nearly a month on June 2 (down 0.77% to 103.56), as US manufacturing data and comments from Fed officials reinforced expectations that the institution may skip a rate hike at its upcoming meeting. Markets are pricing in a 32% chance of a 25 basis point rate hike at the June meeting, according to CME Group’s FedWatch tool, compared with nearly 67% a day earlier.

Finally, the dollar rebounded to 104.04 on June 3 after the May nonfarm payrolls report showed a rise in jobs. The report showed that public and private payrolls increased by 339,000 in May, far exceeding the median forecast of 190,000 by economists. The May jobs jump followed a 253,000 gain in April. However, the unemployment rate rose to 3.7% from a 53-year low of 3.4% in April.

Meanwhile, the dollar rose 0.8% against the Japanese yen this week, now on track for its biggest weekly gain since mid-May. The pound rose 0.8% against the dollar. Elsewhere, the euro fell 0.45% against the dollar to $1.07135. The single currency fell from a one-week high after European Central Bank President Christine Lagarde said further policy tightening was needed.

USD exchange rate today June 4: USD establishes weekly decline after many strong increases. Illustration photo: Reuters.

Domestic USD exchange rate today

In the domestic market, at the end of the trading session on June 2, the State Bank announced the central exchange rate of the Vietnamese Dong to the USD decreased by 7 VND, currently at: 23,722 VND.

* The reference exchange rate at the State Bank's transaction office has slightly decreased, currently at: 23,400 VND - 24,858 VND.

USD exchange rates at commercial banks are as follows: