Vietnamese currency falls to record low against dollar

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.