The exchange rate at Vietnamese commercial banks crossed VND24,000 per dollar Thursday, reaching a new peak that it had not scaled before.
With the State Bank of Vietnam setting the central rate at VND23,371, up from VND23,346 on Wednesday, commercial banks can trade the greenback at VND22,670-24,072.
The greenback’s buying and selling prices at Vietinbank, a "Big 4" lender, rose to VND23,560 and VND24,060, respectively.
The exchange rate at another "Big 4" Vietcombank was VND23,640 for buying and VND23,950 for selling, up VND20 in one day. After a strong appreciation in September, the U.S. dollar has climbed up 4.5% against the Vietnamese dong so far this year at this bank.
At Eximbank, the exchange rate reached VND23,680 for buying and VND23,960 for selling, respectively. Corresponding values at BIDV were VND23,695 and VND23,975.
At Techcombank, the rate went up by VND50 for buying to VND23,678 and VND70 for selling to VND23,990.
The exchange rate at the free market was between VND24,200 and VND24,290.
Amid appreciation of the greenback on the global market, the State Bank of Vietnam raised regulatory interest rates late last week
Financial data provider WiGroup estimates the central bank has sold $23 billion to stabilize the exchange rate, bringing the country’s foreign exchange reserve down to $87 billion.
Like other countries, Vietnam will see impacts from the Federal Reserve’s interest rate hikes, said Professor Nguyen Mai, chairman of the Vietnam Association of Foreign-Invested Enterprises (VAFIE). According to the most optimistic forecast, from now to the year-end, the Vietnamese dong may lose about 3% against the U.S. dollar, he added.