Vietnam dong slips after cbank sets lower midpoint
Vietnam’s dong slipped to 17,200/17,300 per dollar in early trade on Thursday after the central bank effectively devalued the currency by setting the mid-point 3 percent weaker than the previous day.
The dong has been under pressure to fall and traders said the market had expected the central bank to allow it to slip. Vietnam had already allowed the dong to lose some 6 percent of its value against the dollar this year.
The interbank dollar/dong market has been frozen for weeks, with the dong stuck at the weak end of its band and almost no deals being done.
On Thursday, the dollar/dong mid-point was 16,989 compared to 16,494 dong per dollar on Wednesday. The central bank allows the dollar/dong to trade within a 3 percent band on either side of the mid-point, which means it could go as low as 17,499. (Reuters)
