The Vietnamese dong has continued to devalue against the U.S. dollar to a new low, with the greenback remaining strong ahead of a Federal Reserve (Fed) policy meeting.
The State Bank of Vietnam (SBV), the country’s central bank, raised its mid-point exchange rate by VND14 from Monday to VND24,060 per U.S. dollar on Tuesday, setting a record high. The rate is used as a reference for banks in Vietnam.
Tracking the SBV’s move, commercial banks have increased their quotes for the greenback. State-controlled Vietcombank, one of the largest forex traders in the country, added VND150 to the rate, setting it at VND24,160-24,530 for bids and asks, respectively.
The respective rates were fixed at VND24,250-24,550 at BIDV, another of the country's "Big 4" lenders, and VND24,228-24,580 at privately-run Techcombank.
Gold shops in Hanoi quoted the dollar at VND24,270-24,350, up VND50 and VND70 yesterday, respectively, and VND180-190 lower than commercial banks.
Prices of the euro and the yen on the unofficial market also increased against the dong.
Forex supplies remain ample in Vietnam, which posted a record-high trade surplus of $3.82 billion in August and $20.19 billion in the first eight months of the year.
Analysts said earlier this month that the dong’s slide would be short-lived and the currency would remain stable through the year-end, with a possible devaluation of 2%.