Euro exchange rate today 5/7/2025: Euro slightly increased

World EUR/USD exchange rate today May 7, 2025

The EUR/USD pair rose to near 1.1360, mainly due to the weakening of the US dollar ahead of the US Federal Reserve's interest rate decision, scheduled to take place on Wednesday.

The DXY index, which measures the greenback's strength against six major currencies, fell to near 99.40.

According to the CME FedWatch tool, traders are almost certain that the Fed will keep interest rates in the range of 4.25% - 4.50% in May. Therefore, what the market is most interested in now is the policy direction for the rest of the year, not just the upcoming interest rate decision.

The Fed is seen as facing a difficult choice: keep interest rates high long enough to get more clarity on the economic outlook, or act prematurely amid the potential for volatility from President Donald Trump’s new policies. Some concerns have emerged about the possibility of new tax policies slowing growth and pushing up consumer inflation.

However, US Treasury Secretary Scott Bessent insisted that these policies would boost growth and reduce the budget deficit. In an interview with CNBC, he said the goal is to return economic growth to 3% next year, while reducing the federal deficit by about 1% each year.

In addition to the Fed, markets are also closely watching developments related to bilateral trade agreements. Mr. Bessent said the US is close to reaching some agreements this week, and there may be more significant progress with China in the coming time.

Domestic Euro exchange rate today 5/7/2025

The Euro exchange rate at the State Bank's buying and selling exchange center decreased slightly, currently at: 26,725 VND - 29,538 VND.

EUR exchange rates at commercial banks for buying and selling are as follows: