Forex rates surge against VND
Forex rates surge against VND
Except for the US dollar, foreign currencies have surged against the Vietnamese dong during the last month as demand for foreign goods increases ahead of the Tet (Lunar New Year) holiday.
At Eximbank, foreign exchange rates of multiple currencies are now up from 1.9 to 5.1 per cent over the previous month.
On February 2, the British pound increased sharply by VND1,600 per pound against Vietnamese dong, a rise by 5.1 per cent. One pound is now selling for VND32,532.
The Swiss franc increased by VND1,140 per franc, a rise of 4.8 per cent. One franc is buying and selling for VND24,298 - 24,615, respectively.
Meanwhile, the euro rose by VND1,015, or 3.7 per cent (VND28,138 - 28,505 per euro). The New Zealand dollar increased by VND555, or 3.4 per cent (VND16,567 - 16,834 per New Zealand dollar)
Other currencies rates have also increased, including the Australian dollar (VND370, or 2 per cent) and the Canadian dollar (VND350, or 1.9 per cent).
Some foreign currencies in Asia also climbed. The Japanese yen increased by VND5, or 2.5 per cent, (VND205.4 - 208.12), the Singapore dollar increased by VND240, or 1.4 per cent (VND17,176 - 17,400) while the Thai baht surged by 3.5 per cent or 25 dong a baht (VND702 - 733).
The increase in foreign exchange rates could make the prices of goods imported from these countries increase.
Nguyen Van Hung of District 3 now has to pay an additional VND1.2 million to buy NZD2,000 of cash for his children to study in New Zealand.
Duong Anh Vu, head of the Analysis Desk in Viet Nam Gold Investment and Trading Joint Stock Company (VGB), said there was nothing particular about recent economic data in Europe and Japan that would lead to the increase in the exchange rate.
The US dollar has continued to decrease. The USD Index decreased to 88.71 points, the lowest during the last four years.
The Fed raised the interest rates for three times in 2017 and more hikes are expected this year, according to Vu.
