Vietnam Dong Tests Trading-Band Limit as Yuan Drops Before Fed
- Currency sank to 22,546 per dollar; 22,547 is weak end of band
- Central bank will keep dong stable until 2016, analyst says
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Vietnam’s dong fell to the brink of its permitted trading range as China’s yuan declined to a four-year low, putting pressure on Asian currencies before an expected increase in U.S. interest rates.
The dong slid as much as 0.2 percent to 22,546 a dollar, before trimming its loss to trade at 22,519 as of 5:27 p.m. in Hanoi, according to prices from local banks compiled by Bloomberg. It can trade as much as 3 percent on either side of the official reference rate, which has been left unchanged at 21,890 since the third devaluation of this year on Aug. 19. The weakest level permitted by the current range is 22,547.