USD exchange rate today May 21, 2025: USD continues to decrease due to policy expectations from the Fed

World USD exchange rate on May 21, 2025

The USD Index (DXY), a measure of the greenback's strength against other major currencies, was trading at 100.22 (down 0.15%) as of 4:30 a.m. (Vietnam time).

Markets are turning their attention to a crucial vote in the US Congress on President Donald Trump's massive tax cut plan.

The bill, if passed, could add between $3 trillion and $5 trillion to the U.S. national debt, according to independent analysts. The dollar is under selling pressure as investors worry the U.S. will have to pay higher interest rates to borrow in the future.

Against the Japanese yen, the dollar fell 0.2 percent to 144.51 yen, its lowest in 12 days, partly due to expectations that an upcoming meeting between Japan's finance minister and his U.S. counterpart could include a discussion of exchange rates. Japan has made clear its opposition to sharp currency swings and its desire to maintain exchange rate stability, which could put further pressure on the dollar if the two countries agree to reduce the spread.

Meanwhile, the Australian dollar weakened slightly after the Reserve Bank of Australia cut interest rates by 0.25 percentage points and left the door open for further cuts in the coming months. The AUD/USD pair fell nearly 0.7%, reflecting cautious sentiment amid uncertain growth prospects.

In China, the yuan also weakened after the country cut key lending rates, amid strong demand for dollars from domestic businesses.

In Europe, the pound held steady after rising 0.6% earlier in the week on hopes of positive economic data and progress in UK-EU trade relations. The euro was also little changed, while the Swiss franc strengthened slightly against the dollar.

Investors are still closely watching comments from Fed officials. Atlanta Fed President Raphael Bostic said the Fed may cut interest rates only once this year because of concerns about continued inflation due to the impact of tariffs.

Meanwhile, Fed Vice Chairman Philip Jefferson also stressed caution, saying that more data should be waited for before making a decision.

Despite President Trump’s delay of some major tariffs, Japan’s top trade negotiators have taken a tough stance against tariffs, suggesting that trade talks remain fraught with uncertainty.

Domestic USD exchange rate today

The central exchange rate today (May 21) was reduced by 2 VND to 24,968 VND/USD by the State Bank compared to the listed rate at the end of last week.

Applying a 5% margin, the current USD exchange rate that commercial banks are allowed to trade is from 23,770 - 26,166 VND/USD.

The reference buying and selling exchange rate is also kept by the State Bank Exchange in the range of 23,770 - 26,166 VND/USD.

In the "black market", the black market USD exchange rate as of 4:30 a.m. on May 21, 2025 increased by 10 VND compared to yesterday in both directions compared to yesterday's trading session, trading around 26,340 - 26,440 VND/USD.

USD exchange rate at domestic banks on May 21, 2025, the market recorded a slight increase trend at most banks

VietinBank is the bank with the strongest adjustment, with the buying price increasing by 190 VND and the selling price increasing by 40 VND, bringing the exchange rate to 25,780 - 26,140 VND/USD. This is the highest buying price among the surveyed banks, equal to BIDV.

Techcombank and Sacombank had moderate increases. Techcombank increased by 19 VND in buying and 17 VND in selling, while Sacombank increased by 11 VND in both directions.

The remaining banks such as Vietcombank, BIDV, and Eximbank all increased slightly by 10 VND in both buying and selling prices, showing more cautious and stable developments.

Eximbank is still the bank with the highest USD selling price in the table, at 26,180 VND/USD, 40-43 VND higher than other banks, showing a relatively high selling price listing policy.