Higher Fed interest rate could weaken Vietnamese currency

The recent increase in U.S. interest rate will generate pressure on the Vietnamese dong and make inflation target hard to meet, experts warn.

The U.S. Federal Reserve raised interest rates on Wednesday and left intact its plans to steadily tighten monetary policy.

Strong investment and remittance inflows have put the country in a good position this year.

Asian stocks slipped but the dollar was buoyant early on Thursday as markets scrambled to factor in a near-term U.S. interest rate hike foreshadowed in minutes of the Federal Reserve's last monetary meeting.

Asian shares stepped back on Wednesday after strong U.S. inflation data and comments from Federal Reserve officials rekindled the prospects of the central bank raising rates later this year.