Weakening USD, Will It Push Prices to New Bottom?
The USD Index (DXY), a measure of the greenback's strength against other major currencies, fell back to 99.27 as of 11:15 a.m. (Vietnam time).
Compared to the previous session, the euro exchange rate against the USD increased by 0.23% to 1.1375, the pound exchange rate against the USD increased by 0.27% to 1.3490, while the USD exchange rate against the Japanese yen decreased by 0.3% to 143.60.
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The dollar traded sideways over the weekend but posted its first monthly gain against the yen this year as investors weighed the possibilities of trade tariffs, even as President Donald Trump faces court action over them.
Last week, the USD weakened due to a series of economic uncertainties in the US. The central exchange rate between the Vietnamese Dong and the USD today, June 2, is currently 24,970 VND. The reference USD exchange rate at the State Bank of Vietnam's transaction office is currently 23,772 - 26,168 VND.
Analysts from Bank of America said that the weakening of the USD needs more weak US economic data. If the US economy continues to stabilize, they hope that investors will ignore policy developments and return to buying US assets, supporting the USD and returning to US exceptionalism.
However, if the US economy “landed,” the dollar could weaken further to a new low for the year. According to a Reuters survey, more than 55% of foreign exchange strategists expressed concerns about the dollar’s safe-haven role, up sharply from last month.
Uncertainty over the Trump administration's trade and fiscal policies has undermined investor confidence in the dollar.
