Vietnam Dong Advances for Fifth Day

Vietnam's dong advanced for a fifth day against the U.S. dollar. Government bonds rose. The currency strengthened 0.1% to 16,820 against the dollar as of 3:59 p.m. in Hanoi, according to data compiled by Bloomberg. That was the biggest gain since May 14.

The State Bank of Viet Nam (SBV) fixed the dong's daily reference rate at 16,501 a dollar, compared with 16,504 yesterday. The currency is allowed to trade up to 2% on either side of the rate.

Viet Nam will lend dollars to the 120 members of the Viet Nam National Textile and Garment Group to help maintain production, the central bank said in a statement on its Web site yesterday.

SBV asked state-owned commercial banks to supply dollars needed to pay for imports by the companies. Textiles were Vietnam's second-biggest export by value last month.

SBV has limited the sale and lending of dollars to companies importing and producing essential products including fuel, paper, steel and coal to curb inflation and narrow the trade deficit.

The local currency traded at 16,800 a dollar at money changers in the so-called free market in Ho Chi Minh City, according to an information service run by state-owned Viet Nam Posts and Telecommunications.

Five-year bonds gained for a second day. The yield on the benchmark notes slid 12 basis points to 19.71%, according to a daily fixing price from 10 banks compiled by Bloomberg. A basis point is 0.01 percentage point. (Bloomberg)