The State Bank of Vietnam today hiked the interbank exchange rate for the dollar after keeping it unchanged for three days.
The new rate has been set at VND20,668 a dollar, up by VND13 and the highest since May 27.
The dong has weakened by VND40 since October 4, with banks now trading the greenback in a band between VND20,461 and VND20,875.
On the black market, it was sold at VND21,350 a dollar, down by VND50 since the weekend and by VND300 from its peak on October 5.
Sai Gon Tiep Thi newspaper said the falling gold prices and the narrowing gap between domestic and global prices had reduced the demand for the dollar on the black market.
Meanwhile, gold prices in Vietnam made a sudden recovery today.
At 10am they rebounded to VND43.85 million a tael (37.5 grams) in Ho Chi Minh City and towards the VND44 million mark in Hanoi.
The metal had closed yesterday at VND43.29 million in Ho Chi Minh City, down by VND110,000 from the opening and VND160,000 from last week.
Spot gold rose by US$23.4 an ounce in London yesterday to $1,663.1.
At the unofficial exchange rate, the gap between domestic and global prices in Vietnam has narrowed to a mere VND300,000 a tael against VND4 million some time ago.
A source told Tuoi Tre that the central bank yesterday licensed two more banks to join the alliance of Saigon Jewelry Co, the country’s largest gold trader, and five banks that sells gold at below market rates to tame the soaring prices.