Greenback slides as gold rises to two-month high
The greenback on February 11 slightly dipped against the previous day in
the wake of increasing gold prices, marking the highest point for gold
in two months.
The greenback on February 11 slightly dipped against the previous day in
the wake of increasing gold prices, marking the highest point for gold
in two months.
The local gold price gained 0.1 percent on the day to settle at 35.53 million VND (1,675 USD) per tael (one tael is equivalent to 1.2 ounces).
Since the end of January, local gold has seen an overall upwards trend from 35 million VND per tael, but this trend is not yet clear or stable.
Increase on February 11 in local gold was driven by the soaring global gold prices, which hit a three-month high as investors wagered the Fed's interest rates were set to remain near zero for an extended period.
The international gold price rose by 0.7 percent to 1,283.69 USD per ounce, whilst the dollar lost a quarter of a cent to the euro at 1.3668 USD.
Stable FX
Vietnamese traders on February 11 exchanged the US dollar at 21,230 VND on the parallel market – down 10 VND against the previous day.
Despite these slight changes, the Vietnamese dong exchange rate to the US dollar has been stable. Due to the recent stability, foreign currency debts have risen, contributing to a 1 percent increase year-on-year in January.
The State Bank of Vietnam affirmed its intent to keep the forex changes within 2 percent in 2014 and is now committed to a flexible approach to management that maintains currency market stability and increases foreign currency reserves.
SBV Deputy Governor Nguyen Dong Tien said the central bank manages the FX in the line with the National Assembly's targets of 5.8 percent economic growth and 7 percent inflation.
While economic experts welcomed such intentions, they also warned that any FX changes must be thoroughly examined to avoid chaos in the market.
Head of the SBV Foreign Currency Management Department Nguyen Quang Huy claimed the bank's most appropriate management mechanism was currently short-term exchange rate adjustments. The bank also needs hedging instruments to limit exchange rate risks, as rare as their use may be.
In the latest Asia monthly report released on February 10, ANZ expected the central bank to maintain its benchmark refinancing rate on a prolonged hold at 7 percent.-VNA
The local gold price gained 0.1 percent on the day to settle at 35.53 million VND (1,675 USD) per tael (one tael is equivalent to 1.2 ounces).
Since the end of January, local gold has seen an overall upwards trend from 35 million VND per tael, but this trend is not yet clear or stable.
Increase on February 11 in local gold was driven by the soaring global gold prices, which hit a three-month high as investors wagered the Fed's interest rates were set to remain near zero for an extended period.
The international gold price rose by 0.7 percent to 1,283.69 USD per ounce, whilst the dollar lost a quarter of a cent to the euro at 1.3668 USD.
Stable FX
Vietnamese traders on February 11 exchanged the US dollar at 21,230 VND on the parallel market – down 10 VND against the previous day.
Despite these slight changes, the Vietnamese dong exchange rate to the US dollar has been stable. Due to the recent stability, foreign currency debts have risen, contributing to a 1 percent increase year-on-year in January.
The State Bank of Vietnam affirmed its intent to keep the forex changes within 2 percent in 2014 and is now committed to a flexible approach to management that maintains currency market stability and increases foreign currency reserves.
SBV Deputy Governor Nguyen Dong Tien said the central bank manages the FX in the line with the National Assembly's targets of 5.8 percent economic growth and 7 percent inflation.
While economic experts welcomed such intentions, they also warned that any FX changes must be thoroughly examined to avoid chaos in the market.
Head of the SBV Foreign Currency Management Department Nguyen Quang Huy claimed the bank's most appropriate management mechanism was currently short-term exchange rate adjustments. The bank also needs hedging instruments to limit exchange rate risks, as rare as their use may be.
In the latest Asia monthly report released on February 10, ANZ expected the central bank to maintain its benchmark refinancing rate on a prolonged hold at 7 percent.-VNA
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