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Dong gains as central bank cuts supply
Vietnam’s dong rose Thursday on speculation the central bank cut supplies of the currency to slow the fastest inflation since at least 1992.
The State Bank of Vietnam Thursday bought back VND1 trillion (US$60.3 million) worth of treasury bills in so-called open market operations, data received from the central bank showed. A day earlier, the bank bought VND2 trillion ($120.6million) of treasury bonds.
“The central bank is letting the dong gain as fighting inflation is still its top priority,” said Lai Tat Ha, head of currency trading at Hanoi-based Vietnam Technological & Commercial Joint-Stock Bank (Techcombank).
The currency advanced 0.06 percent to VND16,580 a dollar as of 4 p.m. in Hanoi, according to data compiled by Bloomberg. The currency was unchanged on Wednesday and Tuesday.
Five-year bonds were unchanged for a second day, with the yield at 16.11 percent, according to a daily fixing price from 10 banks compiled by Bloomberg.
Vietnam Development Bank will auction VND400 billion ($24.2 million) each of five- and 10-year notes on September 19, according to a statement from the Hanoi Securities Trading Center, where the sale will take place.
Thanhnien
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