Dollar strengthens, hits central bank's ceiling price of 22,547 dong

The dollar jumped yesterday to trade at the ceiling rate set by the State Bank of Viet Nam for commercial banks while the US currency was even stronger in unofficial trading.

Local banks sold dollars at VND22,547, up 10 to 50 dong from Friday. The bank allows the dollar to trade in range of 3 per cent, between VND21,233 and VND22,547. The central bank did not publish on its website how many dollars it sold to keep the rate from breaching the band's ceiling.

Banks bought dollars at between VND22,450 and VND22,490.

Meanwhile, at the most popular unofficial money exchangers on Ha Trung Street, Ha Noi, Quoc Trinh Gold and Jewelry Ha Noi sold the dollar between VND22,630 and VND22,660.

Local forex experts said investor anticipation of a US interest rate increase later this week likely helped fuel demand for dollars. Investors also expect a weaker Chinese yuan could put pressure on Viet Nam to devalue its currency to keep its exports competitive.The yuan traded at a fresh 4-1/2 year low yesterday.

On August 19, the central bank devalued the dong by another one per cent, its third currency depreciation in 2015.

On the global market, spot gold fell 0.2 percent to $1,068.6 an ounce ($1,287 per tael or 1.205 ounce) while the local gold prices was listed stable at VND33.12 million ($1,468) per tael.

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