Vietnamese currency falls to record low against dollar

By Dat Nguyen October 18, 2022 | 08:51 pm PT

The dong depreciated to a new low against the U.S. dollar Wednesday morning, with state-owned Vietcombank selling the greenback at VND24,620 at 11.30 a.m.

The Vietnamese currency fell 0.12% from Tuesday and 7.24% since the beginning of the year.

Eximbank sold the dollar at VND24,620, 0.24% higher than Tuesday, and Techcombank at VND24,680, 0.33% higher.

The U.S. Dollar Index, which measures the currency’s strength against six major currencies, is at the highest level since 2002 of around 112.

An employee of a bank counts one hundred U.S. dollar notes. Photo by Reuters

Analysts expect the dong to come under more pressure from a surging dollar in the remaining months of this year since the State Bank of Vietnam does not have much reserves left to defend the dong after selling around 20% on it so far this year.

As up to 70% of all trade contracts in Vietnam are paid in dollars, its continuing strength is bad news for businesses.