Vietnam dong rises after central bank says devaluations over

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Vietnam's dong gained after Tuoi Tre newspaper cited State Bank of Vietnam Deputy Governor Nguyen Van Binh as saying there is no reason to further devalue the currency, which was allowed to slide in February and November.

Government bonds advanced.

The currency strengthened 0.06 percent to trade at 18,969 per dollar at 4:04 p.m. Thursday in Hanoi, according to data compiled by Bloomberg. The central bank set the daily reference rate at 18,544, unchanged since Feb. 11.

The currency, which has slumped 6.2 percent in the past year, is allowed to fluctuate by as much as 3 percent on either side of that rate.

"The exchange rate has been stable," said Lai Tat Ha, head of currency trading at Hanoi-based Vietnam Technological & Commercial Joint-Stock Bank. "There is less dollar hoarding, which shows that everyone has more confidence in the dong."

The currency changed hands at 18,980 per dollar at gold shops in Ho Chi Minh City, compared with 18,970 on Wednesday, according to a telephone information service run by state-owned Vietnam Posts & Telecommunications.

The Southeast Asian nation's benchmark five-year bonds advanced, pushing their yield down five basis points to 11.5 percent, the lowest level since Dec. 25, according to a daily fixing price from banks compiled by Bloomberg. A basis point is 0.01 percentage point.

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