Dong gains as Vietnam's central bank says foreign reserves rose

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The Vietnamese dong climbed from a four-month low as the central bank said the nation's foreign-exchange reserves have been bolstered by export earnings and remittances. Government bonds were steady.

The currency stockpile has "increased significantly, quite sufficient to intervene and stabilize the foreign-currency market in any event," the State Bank of Vietnam said in a statement on its website Tuesday.

Higher reserves "will definitely help boost confidence in the dong," said Lai Tat Ha, head of currency trading at Hanoi- based Vietnam Technological & Commercial Joint-Stock Bank. "It confirms the State Bank will continue to pro-actively intervene by anticipating the market's real dollar demand."

The dong gained 0.05 percent to 20,810 per dollar as of 3:47 p.m. on Tuesday in Hanoi, according to data compiled by Bloomberg. It fell to 20,820 yesterday, the lowest level since April 25.

The central bank set the dong-dollar reference rate at 20,618 today, unchanged since Aug. 10, according to its website. The local currency is allowed to trade up to 1 percent on either side of the fixing.

The yield on Vietnam's five-year bonds was little changed at 12.57 percent, according to a daily fixing price from banks compiled by Bloomberg.

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