The USD Index (DXY), which measures the greenback's performance against six major currencies, stood at 103.55, down 0.44%.

Forecast of USD trend this week

The rally in the DXY that began in early May appears to have come to a halt. The index has been hovering around 104 for the past few weeks. The price action on the charts suggests that the rally may be over. A strong breakout above 104 is needed for the dollar to continue its upward momentum. The outcome of the Fed meeting next week will determine whether the index can rise above 104.

Chart of DXY Index fluctuations over the past week. Photo: Marketwatch.

In addition, investors are also looking forward to important economic forecasts in the coming time, in order to have a clearer view of the future interest rate hike roadmap. Overall, the Fed meeting may decide the new direction of the market in the future.

As expected, the DXY index fell last week, and it is likely to test 103 this week. The index needs to stay above 103 to have a chance to break above 104 and rise to 106. Conversely, a drop below 103 would establish a bearish momentum for the greenback, even falling to the 102-101 zone again.

On the other hand, the euro has been well supported above 1.06 for the past few weeks. Resistance for the single currency this week is at 1.08 and 1.09. The single currency needs to rise strongly above 1.09 to establish bullish momentum and head towards 1.10-1.11 or higher. Conversely, if the euro remains below 1.08-1.09, the outlook is bearish and the currency could fall to 1.05 or lower.

USD exchange rate today June 12: The Fed meeting will decide the USD trend. Illustration photo: Reuters.

Domestic USD exchange rate today

In the domestic market, at the end of the trading session on June 9, the State Bank announced the central exchange rate of the Vietnamese Dong to the USD at: 23,717 VND.

* The reference exchange rate at the State Bank's transaction office increased slightly, currently at: 23,400 VND - 24,852 VND.

USD exchange rates at commercial banks are as follows:

USD exchange rate

Buy

Sell

Vietcombank

23,310 VND

23,650 VND

Vietinbank

23,265 VND

23,723 VND

BIDV

23,340 VND

23,640 VND

* The Euro exchange rate at the State Bank's buying and selling exchange center increased slightly to: 24,300 VND - 26,858 VND.

Euro exchange rates at commercial banks are as follows:

Euro exchange rate

Buy

Sell

Vietcombank

24,892 VND

26,023 VND

Vietinbank

24,433 VND

25,723 VND

BIDV

24,891 VND

26,015 VND

MINH ANH