USD exchange rate today (August 29): USD weakens as expectations of Fed rate cut in September increase

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 0.34%, currently at 97.90.

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

USD exchange rate today in the world

The dollar weakened against major currencies as traders increased bets that the Federal Reserve will cut interest rates next month, after New York Fed President John Williams signaled such a move was likely.

The greenback continues to come under pressure from President Donald Trump’s campaign for more influence over monetary policy, as he seeks to remove Lisa Cook, one of the Fed’s governors. Cook filed a lawsuit on Thursday, arguing that President Trump does not have the authority to remove her.

Although the dollar pared some of its losses after data released on Thursday showed improved jobless claims and stronger-than-expected GDP growth, the currency remained weak in the U.S. afternoon session as investors awaited more key data.

“The current picture does not suggest a significant slowdown . Ultimately, it all depends on the Fed and the non-farm payrolls numbers. I think next week’s numbers will be watched very closely,” said Francesca Fornasari, head of currency solutions at Insight Investment.

The dollar fell against the euro, even after France's prime minister unexpectedly called for a confidence vote next month on Monday. The euro rose 0.43% to $1.1688. The pound also rose 0.13% to $1.3516.

In an interview with CNBC on Wednesday, New York Fed President John Williams said rates could be cut at some point, but policymakers need to watch upcoming data to decide whether a cut at the Fed's September 16-17 meeting is appropriate.

“We are particularly focused on the labor market situation and how that will impact the Fed as they appear to be in the phase of re-engaging in their easing cycle,” said Brian Daingerfield, head of G10 FX strategy at NatWest Markets. “The details of the non-farm payrolls report, I think, will be the key to which way the balance of payments tilts,” he said.

The dollar fell 0.40% to 146.815 yen against the yen. Ryosei Akazawa, Japan's chief trade negotiator, abruptly canceled a trip to Washington at the last minute on Thursday, delaying the announcement of details of Japan's $550 billion investment package in the United States as part of a tariff deal. A Japanese government spokesman said the decision was made after discussions with the U.S., revealing that some issues needed further discussion "at the administrative level."

The US dollar fell to its lowest level against the yuan in the international foreign exchange market since November, closing down 0.46% at 7.1190 yuan.

Domestic USD exchange rate today

In the domestic market, at the beginning of the trading session on August 29, the State Bank announced the central exchange rate of the Vietnamese Dong against the USD at 25,268 VND.

* The reference USD exchange rate at the State Bank's buying and selling exchange center has decreased, currently at: 24,055 VND - 26,481 VND.

USD exchange rates at commercial banks are as follows: