ID :
54547
Thu, 04/09/2009 - 12:15
Auther :
Shortlink :
http://m.oananews.org//node/54547
The shortlink copeid
Dollar up, gold down on street
Hanoi (VNA) - The US dollar has stayed down in the official market for the last two weeks but rose on the street to 17,900 VND.
The State Bank of Vietnam has continued to depreciate the currency since it
widened the daily trading band to +/- 5 percent from +/- 3 percent. It had fallen
by 0.23 percent from 16,980 VND on March 24 to VND 16,940 VND on April 7.
Commercial banks lowered the rate from VND 17,829 to VND 17,787 on April 7.
At abundant supply of short-term US dollar from trade surplus, coupled with slow
disbursement of US loans, is blamed for the depreciation of the dollar.
The General Statistics Office reported Vietnam had a record 1.7 billion USD
trade surplus for the first three months of this year.
The ongoing sluggish global trade activity is believed to have affected foreign
trade across Vietnam 's border, which caused a decrease in dollar demand and
abundant dollar supply at commercial banks, indicated by the dollar interest rate
decreasing by 0.1-0.2 percent per year for short-term deposits to 2.05-2.54
percent annually.
But while the dollar is cheaper at the banks, it has steadily climbed on the
street from 17,860-17,900 VND, up 250-300 VND per dollar.
Meanwhile, domestic gold on April 7 reduced by 400,000-500,000 VND per tael (a
tael equal 1.2 troy oz) against late last week to 19.39-19.45 million VND
(1.090-1,093 USD) for the third consecutive session, following a bullion fall on
April 6 on global market as some investors unwound safe-haven positions while
others sold as the dollar strengthened and some investors were also unloading gold
along with other commodities.
"Investors are becoming smarter. They are likely to 'listen to the market's move'.
The current domestic gold price is 300,000 VND (16.68 USD) per tael higher than
global price, so they don't want to buy or sell at this time," Bao Tin Minh Chau
business manager Nguyen Huu Dang said.
"I think domestic price will dip more before rebounding," he said.
The domestic gold price was up by about 4.3 percent for the first quarter of this
year against the first three months of last year.
Global gold prices on April 7 rose in a technical rebound and a round of
short-covering after dropping 6 percent over three days, climbing 1 percent to as
high as 877.60 USD per ounce, up nearly 0.9 percent from New York's notional close
of 868.80 USD.-Enditem
The State Bank of Vietnam has continued to depreciate the currency since it
widened the daily trading band to +/- 5 percent from +/- 3 percent. It had fallen
by 0.23 percent from 16,980 VND on March 24 to VND 16,940 VND on April 7.
Commercial banks lowered the rate from VND 17,829 to VND 17,787 on April 7.
At abundant supply of short-term US dollar from trade surplus, coupled with slow
disbursement of US loans, is blamed for the depreciation of the dollar.
The General Statistics Office reported Vietnam had a record 1.7 billion USD
trade surplus for the first three months of this year.
The ongoing sluggish global trade activity is believed to have affected foreign
trade across Vietnam 's border, which caused a decrease in dollar demand and
abundant dollar supply at commercial banks, indicated by the dollar interest rate
decreasing by 0.1-0.2 percent per year for short-term deposits to 2.05-2.54
percent annually.
But while the dollar is cheaper at the banks, it has steadily climbed on the
street from 17,860-17,900 VND, up 250-300 VND per dollar.
Meanwhile, domestic gold on April 7 reduced by 400,000-500,000 VND per tael (a
tael equal 1.2 troy oz) against late last week to 19.39-19.45 million VND
(1.090-1,093 USD) for the third consecutive session, following a bullion fall on
April 6 on global market as some investors unwound safe-haven positions while
others sold as the dollar strengthened and some investors were also unloading gold
along with other commodities.
"Investors are becoming smarter. They are likely to 'listen to the market's move'.
The current domestic gold price is 300,000 VND (16.68 USD) per tael higher than
global price, so they don't want to buy or sell at this time," Bao Tin Minh Chau
business manager Nguyen Huu Dang said.
"I think domestic price will dip more before rebounding," he said.
The domestic gold price was up by about 4.3 percent for the first quarter of this
year against the first three months of last year.
Global gold prices on April 7 rose in a technical rebound and a round of
short-covering after dropping 6 percent over three days, climbing 1 percent to as
high as 877.60 USD per ounce, up nearly 0.9 percent from New York's notional close
of 868.80 USD.-Enditem
