USD exchange rate today (August 23): USD drops sharply

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 0.90%, currently at 97.73.

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

USD exchange rate today in the world

The dollar fell sharply after Federal Reserve Chairman Jerome Powell indicated the possibility of an interest rate cut at the central bank’s September meeting. Investors took that as a green light to buy riskier assets, expecting the central bank to be ready to cut rates. However, they remained cautious about the risk of stagflation and concerns that the market was too optimistic.

In his final speech as Fed chairman at an economic symposium in Jackson Hole, Wyoming, Powell hinted at a possible rate cut in September but stopped short of making a firm commitment. Friday’s speech came as the White House ramped up pressure for easier monetary policy, raising concerns that political influence could make the Fed too aggressive in cutting rates in the future.

“Powell has pretty much confirmed a rate cut in September, and that’s having a ripple effect across global markets,” said Matthew Miskin, co-head of investment strategy at Manulife John Hancock Investments. “But the question is, what happens after September? I think that’s where the market is getting ahead of itself,” he added.

The Jackson Hole speech followed a weak July jobs report and sharp downward revisions to previous data, raising expectations that the Fed will cut interest rates from their current range of 4.25% to 4.5% this year. However, Powell’s comments sent the dollar sharply lower as concerns about slowing growth prospects, along with questions about the Fed’s independence, contributed to the sell-off. Lower interest rates could make the dollar less attractive to investors who could seek better yields in other currencies, reducing demand for the greenback.

“Interest rate differentials are hurting the dollar,” said Karl Schamotta, chief market strategist at Corpay, adding that traders are positioning for “asymmetric upside opportunities outside the US.”

The speech was also Mr. Powell's last as Fed chairman, after relentless pressure from US President Donald Trump, who has repeatedly called for the Fed to lower interest rates. Mr. Powell once again affirmed that the Fed's policy will be based entirely on data and will never deviate from that principle. However, the pressure increased this week after Mr. Trump called for Fed Governor Lisa Cook to resign so that he could appoint more moderate members to the Federal Open Market Committee (FOMC). On Friday, Mr. Trump also said he would fire Ms. Cook if she did not resign following allegations related to mortgage loans.

“Mr. Trump’s remarks about Ms. Cook once again raise concerns about the Fed’s independence,” said Ms. Helen Given, director of trading at Monex USA (Washington).

The euro rose 0.97% to $1.1717. Against the Japanese yen, the dollar fell 1.1% to 146.74 yen.

The US dollar (USD) fell sharply. Photo: tapchitaichinh.vn

Domestic USD exchange rate today

In the domestic market, at the beginning of the trading session on August 23, the State Bank announced the central exchange rate of the Vietnamese Dong to the USD at 25,298 VND.

* The reference USD exchange rate at the State Bank's buying and selling exchange center increased, currently at: 24,084 VND - 26,512 VND.

USD exchange rates at commercial banks are as follows: