Exchange rate of the US dollar today (May 1): the US dollar increases after the drop in GDP

Meanwhile, on the American market, the US dollar index (Dxy) measuring the greenback fluctuations compared to six major currencies (EUR, JPY, GBP, CAD, SEK, CHF) increased by 0.40% to 99.64.

US dollar exchange rate today in the world

The US dollar progressed on Tuesday in the face of the main currencies after new data has shown that the largest economy in the world has contracted in the first quarter, worse than market expectations but better than what of the largest American banks had predicted.

The gross domestic product (GDP) fell 0.3% in the first quarter, penalized by a sharp increase in imports aimed at buying goods before the Trump administration imposes customs duties on most goods, according to a report by the Ministry of Commerce. In addition, before tax imports also increased by 41.3 % in the first three months of the year.

Economists plan a 0.3% increase according to a Reuters survey. However, Goldman Sachs plans to decrease 0.8 %, while JP Morgan plans to drop 1.75 %. Consequently, GDP in the first quarter decreased after increasing 2.4 % in the fourth quarter of 2024.

Consumer spending continued to grow, although a moderate pace. Consumer expenditure in services, including health care, increased by 2.4 % in the first quarter.

“It is important to understand that a large part of the drop in GDP is due to a sharp increase in imports, which has slowed down the growth of GDP. And this is probably due to the anticipation of customs duties, “said Oliver Pursche, main vice-president and advisor at Wealthspire Advisors in Westport, Connecticut.

Following this data, the US dollar increased 0.3% compared to the Japanese Yen to 142.77 yen, while the euro dropped by 0.4% to $ 1,1343.

The greenback is on the way to knowing its highest monthly decrease against Yen since July 2024. On the other hand, the European common currency has been on the way to know its strongest monthly increase since November 2022.

The Sterling book dropped by 0.5% to $ 1,3340. In April, the Sterling book increased by 3.3 %, its highest increase in the dollar since November 2023.

A separate report showing an increase in expenditure and revenues of American consumers as well as a slowdown in annual inflation also stimulated the greenback. Data has shown that personal income in the United States has increased by 0.5 % in March and that spending increased by 0.7 %, both superior to economists’ forecasts in a Reuters survey.

During the 12 months until March, the price for prices for personal consumer expenditure (PCE), the preferred inflation measure of the federal reserve, increased by 2.3 %, against an increase of 2.7 % in February. Basic annual inflation also decreased compared to the previous month, increasing by 2.6 %, after having increased by 3.0 % in February.

At the monthly level, the figures of the main PCE and the basic PCE remained unchanged from the previous month.

After the PCE data, the term contracts on American interest rates continued to point to the possibility of a new drop in Fed rates in June, with a total drop of approximately 100 base points, or possibly four decreases of 25 basis by 2025. This would bring the key rate of the American central bank to 3.25% -3.50% by the end of this year.

Earlier in the session, the National ADP employment report showed that US private sector wages increased more slowly than expected in April. Private sector wages only increased by 62,000 jobs this month, after an increase of 147,000 jobs in March. Economists had scheduled an increase of 115,000 jobs in the private sector.

US dollar exchange rate today domestic

On the internal market, at the start of the May 1 negotiation session, the State Bank announced that the central exchange rate of the Vietnamese Dong compared to the US dollar remained unchanged, currently at 23,956 VND.

* The reference exchange rate rate at the State Bank Transaction Office for purchase and sale remains unchanged, currently at: 23,759 VND – 26 153 VND.

US dollar exchange rate In commercial banks, buy and sell as follows:

* The EUR exchange rate at the exchange and sales exchange office of the State Bank remains unchanged, currently at: 27,033 VND – 29,879 VND.

EUR exchange rates in commercial banks are as follows:

* The Japanese Yen exchange rate at the State Bank exchange office for purchase and sale remains unchanged, currently at: 167 VND – 184 VND.