Dong Resurgent, For Now

August 2008 | Market Strategy

The Vietnamese dong has continued to strengthen this week, paring back parts of the losses incurred during its precipitous slide in the second quarter. Currently trading at VND16,580/US$, the dong could potentially see some further upward momentum, possibly towards VND16,500/US$ over the near term. Increased dollar supply has prompted the State Bank of Vietnam (SBV) to nudge up the unit's reference rate - around which banks are obliged to trade (within a +/-2% band).

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