Vietnam sets dong fixing at record low

Bloomberg

Vietnam set its reference rate for the dong at a record low, setting the stage for more weakness in the country’s currency
The State Bank of Vietnam set the currency fixing at 23,281 dong per dollar, the weakest since at least 2005, according to data compiled by Bloomberg. That’s after the dong fell to the lowest in more than two years in the previous session.
Vietnam’s dong is on track to fall for the eighth straight month as the dollar pummels emerging-market currencies to fresh lows. The risk-sensitive Korean won is approaching the closely-watched 1400 mark, while the Chinese yuan is teetering on the edge of the key 7 per dollar level.
“The dong is too strong at the moment for an export-oriented economy,” said Trinh Nguyen, a senior economist at Natixis in Hong Kong. “That said, they care about imports, inflation so won’t allow excessive depreciation.”
Nguyen forecasts the dong to approach 24,000 per dollar. The currency rises 0.1% to 23,585 per dollar after falling to 23,615, the lowest since March 2020.
The central bank allows the dong to trade within a band of
3% on the either side of reference
rate, which is based on eight
currencies and is set every day.