Vietnam’s central bank allowed the dong to strengthen modestly against the US dollar between 3 and 6 October, as liquidity conditions eased and short-term interest rates declined.
The State Bank of Vietnam (SBV) set the central exchange rate at VND 25,146 per US$1 on 6 October, down 16 dong from the previous session and 41 dong lower than at the start of the month.
On the unofficial market, rates were steady, with the mid-market rate at VND 26,565 per US$1, maintaining a spread of 5.64 percent above the SBV reference rate.
Meanwhile, Google Finance’s mid-market rate slipped slightly to VND 26,365 per US$1.
The SBV resumed open market operations, injecting around US$265.5 million through seven-, 14-, 28-, and 91-day repos.
The largest amount was seen in the 28-day tenor at US$113.8 million.
Interbank rates continued to soften, with overnight rates falling to 4.27 percent and one-month rates dropping to 4.92 percent.
See also: How Low Can the Vietnamese Dong Go? Why It’s Sliding & What Might Happen Next