|
Dong gains on speculation central bank reduced supply
The Vietnamese dong rose Thursday, ending a two-day decline, on speculation the central bank reduced the currency’s supply to prevent losses amid the recent US dollar rally, as local bonds fell.
The central bank injected VND4 trillion (US$241.4 million) Thursday by buying back treasury bills in so-called open market operations, half of this week’s average, according to data provided by the State Bank of Vietnam.
The currency also gained after the central bank set the reference rate for daily dong trading stronger at VND16,493 a dollar, versus VND16,495 Wednesday.
“The central bank has been selling less dong this week,” said Nguyen Huu Dung, head of the transaction office in Ho Chi Minh City-based Mekong Housing Bank.
“It looks like the bank wanted to strengthen the dong a bit, anticipating further gains in the US dollar.”
The Dollar Index, traded on ICE Futures in New York, was near the highest level in six months on speculation a decline in commodity prices will help revive the US economy.
Government bonds dropped for a second day, with the yield on the benchmark five-year note climbing 7 basis points to 17 percent, according to a daily fixing price from 10 banks compiled by Bloomberg.
Thanhnien
|
