The dollar slipped against its major rivals in Asian trading Wednesday, while Vietnam’s currency took center stage as the country’s central bank said it would again devalue the dong.
One euro bought $1.5018, up from $1.4962 late Tuesday, while $1 bought 88.22 yen, down from 88.49 yen.
The dollar’s weakness helped fuel a rise in gold futures, which rose in electronic trading on Globex. The December contract tapped a record at $1,180, buoyed by investment demand and a report that India might be buying more gold from the International Monetary Fund.
On Tuesday, the dollar struggled to hold onto modest gains against a basket of rivals after the Federal Reserve said it expected a slow recovery with high unemployment, affirming expectations it will keep rates low for some time.
In emerging-markets-currency trading, Vietnam’s central bank said Wednesday it will devalue its currency by 5.4%, effective Thursday, resetting the dollar-exchange rate to 17,961 dong from its current level of 17,034 dong.
The move — Vietnam’s third devaluation in two years — is an apparent attempt to protect its foreign reserves. The State Bank of Vietnam will also narrow the trading band of the dollar against the dong to 3% from 5%.
