The State Bank of Vietnam raised the inter-bank average exchange rate between the VND and USD by 1 percent early on May 7, from 21,458VND to 21,673VND per one USD.

Banks may set their rate within a range of +/- 1 percent of the SBV-set inter-bank average rate.

This is the second time this year the SBV has adjusted the inter-bank rate. The first time was on January 7, also with an increase of 1 percent.

The SBV said the adjustment is made to counter negative impacts from the international market in line with its policy set for this year, which aims to keep fluctuation in the exchange rate at not more than 2 percent.

The bank added that the rising exchange rate over recent days was due to psychological reasons and market expectations, while was still within the band set by the central bank.

Looking ahead, the SBV will continue to apply synchronous policy tools and measures to keep the exchange rate and market stable on the new price level. It will closely monitor the international and domestic markets as well as macroeconomic and monetary forecasts in order to make timely response.-VNA