Vietnam edges dong higher after major devaluation

Vietnam's central bank on Tuesday set the official exchange rate between the dong and the dollar at VND20,703 per dollar, a gain of 0.05 percent in the first increase after a major devaluation last Friday.

Based on the mid-point rate, up from VND20,713 per dollar on Monday, the dollar could move between 20,496 dong and 20,910 dong in interbank transactions on Tuesday within the daily band imposed by the central bank of 1 percent.

Vietnam devalued its beleaguered currency on Friday for the third time in a year, as authorities started to try to address festering economic problems that critics say have been brushed aside in the pursuit of growth.

The latest devaluation, by 8.5 percent, adds to difficulties facing the central bank in balancing the need to curb inflation and complying with government requests to bring rates down, economists and traders said on Monday.

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