The Vietnamese dong edged lower on Thursday as the State Bank of Vietnam (SBV) reduced repo injections and funding costs rose across the interbank market.
The SBV central exchange rate was reduced to to 25,177 per US dollar, down 10 dong from the previous day.
On the informal market, the mid-rate held steady at 26,565, widening the gap with the official rate to 5.51 percent.
Liquidity support was sharply curtailed.
Seven-day repos fell to US$113.7 million from US$227.2 million a day earlier, while 14-day repos halved to US$75.8 million.
The SBV also provided US$24.9 million through 91-day repos.
Tighter conditions pushed short-term borrowing costs higher.
The overnight interbank rate jumped to 4.38 percent from 3.81 percent, while the three-month and six-month rates climbed to 5.50 percent and 5.70 percent respectively.
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