Vietnam's Currency Drops to Limit of Trading Band for First Time
- Dong can trade up to 3% on either side of central bank fixing
- State Bank of Vietnam has devalued three times this year
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Vietnam’s dong declined to the limit of its current trading band for the first time, reflecting further pressure to weaken after three devaluations already this year.
The currency fell as much as 0.07 percent to 22,547 per dollar in Hanoi, diverging from the State Bank of Vietnam’s daily reference rate of 21,890 by the maximum 3 percent that’s permitted. The official rate has been kept steady since it was last cut on Aug. 19, when the trading band was also widened from 2 percent. The monetary authority had doubled the scope for fluctuations only a week earlier, providing room for depreciation as a devaluation of China’s yuan dragged exchange rates lower across Asia.