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

EUR/USD world exchange rate today 5/7/2025

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

The DXY index, which measures the strength of the dollar 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 potential disruptions from President Donald Trump’s new policies. Some concerns have been raised about the possibility that new tax policies could slow growth and push up consumer inflation.

Still, Treasury Secretary Scott Bessent insists the policies will 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 could be more significant progress with China in the coming period.

Domestic Euro exchange rate today 5/7/2025

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

EUR exchange rates at commercial banks are as follows: