Vietnamese Dong Recovers After Decline

The Vietnamese dong dipped today together with government bonds, but managed to recover later. Economists were speculating that credit growth in the country is accelerating, improving prospects for the economy.

Experts reported that the value of outstanding loans was growing and may reach the central bank’s target this year. This is not good for securities as banks have fewer funds to buy them, but a good sign for the country’s economy. The dong was trading sideways for the most part recently as the State Bank of Vietnam was not changing the reference rate since June (the currency is allowed to trade 1 percent on either side of the daily fixing).

USD/VND advanced 0.1 percent to 21,125 today, but retreated back to 21,085 as of 12:04 GMT.

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