Foreign exchange rates today April 21: USD struggles to rise again

The DXY index is struggling to rise back above the psychological 100 level. This has been evident from the price action over the past week. This also makes the greenback likely to continue to decline in the coming days.

Investors are now cautious amid concerns about the impact of trade tariffs from the Trump administration on the US economy . The rapid changes in tariff announcements have sent investors seeking safe haven assets, reducing the appeal of the greenback.

Traders are pricing in a total of 86 basis points of Fed cuts by the end of 2025, with the first move forecast to come in July, putting downward pressure on the dollar despite Powell's more cautious stance, according to CME's FedWatch tool.

US Treasury yields also fell last week. Overall, the short-term picture remains bleak for the DXY.

The DXY remains bearish. The 100-100.50 range is acting as strong resistance and limiting the greenback’s upside. That keeps the initial bearish view intact. The index could fall to 98.50. A break below 98.50 could drag the downside to 96 in the medium term.

The index needs to break above 100.50 to ease the bearish pressure. That would trigger a corrective rally to the 102-102.50 zone. However, the downtrend will remain intact. To reverse the trend, the DXY would need to break above 102.50. But that scenario does not seem likely at the moment.

The yield on the 10-year US Treasury note fell last week, contrary to economists' expectations for a rise. The outlook is mixed ahead. Support for the yield is at 4.2% and resistance is at 4.4%. A break on either side of the 4.2% and 4.4% levels will determine where yields go next.

A break below 4.2% could push yields down to the 4.1-4.0% range. On the other hand, a rise above 4.4% would be bullish, allowing yields to head straight to 4.7% initially and then 4.85%.

The EUR/USD pair has struggled to stay above 1.1250 this week. The EUR could initially rise to 1.16. A break above 1.16 would fuel the upside momentum and take the currency to 1.20 in the coming months.

Conversely, a drop to 1.1150 would only occur if the EUR breaks below the support at 1.1250.

In the domestic market, at the beginning of the trading session on April 21, the State Bank announced the central exchange rate of the Vietnamese Dong against the USD at 24,898 VND.

The reference exchange rate at the State Bank's transaction office increased slightly, currently at: 23,704 VND - 26,092 VND.

USD exchange rates at commercial banks are as follows:

Vietcombank buys 25,730 VND; sells 26,120 VND

Vietinbank buys 25,620 VND; sells 26,130 VND

BIDV buys 25,760 VND; sells 26,120 VND

Source: https://baodaknong.vn/ty-gia-ngoai-te-hom-nay-21-4-usd-vat-lon-de-tang-tro-lai-250039.html