Greenback, stock prices increase, bullion reduces

The VND to USD rate and stock price were on the rise while gold price reduced on December 16, the second day after the Federal Reserve System (FED) raised the interest rate on the US dollar.
SJC gold selling prices continued dropping VND200,000 a tael to VND36 million on December 16 after sliding half a million dong on the previous day.
The price afterwards bounded back by VND100,000 and posted at VND36.2 million a tael at 5p.m on the same day. Buying price fell to VND35.57 million. Both buying and selling prices reduced VND50,000 over the previous day.
At the same time in Hanoi, Doji group bought a tael at VND35.7 million and sold at VND36.12 million, a reduction of 100,000 per tael.
The difference between domestic and world gold prices is VND5 million a tael (US$220).
On the same day, commercial banks increased the VND to USD exchange rate by VND5-10 against the previous day.
Dong A bank sold a US dollar at VND 22,800 and purchased at VND22,710 by late afternoon on December 16. Sacombank increased selling and buying prices to VND22,803 and to 22,690.
Since the beginning of this week, the State Bank of Vietnam has increased the inter-bank exchange rate by VND27 per US dollar while commercial banks have hiked it by VND160.
Mr. Ngo Dang Khoa, head of forex market and bond department of HSBC, said that when FED started increasing the dollar rate, loan interest rate would increase and capital would be withdrawn from developing markets to flow back to the US to enjoy the rate hike.
That will put developing markets including Vietnam under the pressure of their currency devaluation compared to the US dollar amid the already influence of the November US presidential election, he added.
In that context, the interest rate on Vietnamese dong must be kept reasonable to ensure its attractiveness, he said.
The dollar interest rate increase together with questionable trade polices of the US will create market instabilities so businesses should have suitable measures to avoid risks, he advised.
In the stock market, foreign investors posted a net selling value of VND280 billion (US$12.31 million) in the closing session of exchanged traded funds (ETFs) on December 16.
VN-Index escalated 9.24 points to 675.16 while VN30-Index also hiked 7.79 points to 621.04.
On Hanoi bourse, HNX-Index moved up 0.85 points to 79.71 and HNX30-Index was up 2.29 points to 143.24 points.

By Nhung Nguyen – Translated by Hai Mien

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