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Vietnam dong drops most in 10 days as central bank weakens rates
The Vietnamese dong Wednesday fell the furthest in 10 days on speculation the central bank is curbing gains to prevent a stronger currency from hurting exports.
The State Bank of Vietnam (SBV) Wednesday set the reference rate for the dong at 16,514 versus the dollar, compared with 16,511 on Tuesday, according to its website. The dong is allowed to be traded up to 2 percent on either side of the official rate.
The currency fell 0.2 percent to16,615 against the dollar as of 3:30 p.m. Wednesday in Hanoi, according to data compiled by Bloomberg.
“The central bank may have tried to weaken the dong to help exporters,” said Pham Phuong Lan, deputy manager of currency trading at the Bank for Investment and Development of Vietnam, the country’s second-biggest lender by assets.
SBV has been buying foreign currencies from lenders to curtail dong gains and keep the market stable, Thoi Bao Kinh Te Vietnam newspaper reported Tuesday.
Government bonds, meanwhile, rose Wednesday for a third day on speculation the relative safety of fixed income will attract investors after the VN-Index of shares slid to the lowest in more than a month. The yield on the benchmark five-year note fell 28 basis points, the most since September 3, to 15.72 percent, according to a daily fixing price from 10 banks compiled by Bloomberg.
Thanhnien
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