Vietnam devalues dong by 1%
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Vietnam devalues dong by 1%

An employee counts Vietnamese dong bank-notes near US dollar banknotes at a bank in Hanoi Aug 12. Vietnam on Wednesday devalued its currency by 1%. (Reuters photo)
An employee counts Vietnamese dong bank-notes near US dollar banknotes at a bank in Hanoi Aug 12. Vietnam on Wednesday devalued its currency by 1%. (Reuters photo)

HANOI -- Vietnam on Wednesday devalued its currency by 1% following the devaluation of the Chinese yuan and a possible US interest rate increase.

The central bank-set reference rate weakened to 21,890 dong to the US dollar and the trading band at which the dong could be traded above or below was widened to 3% from 2%, the State Bank of Vietnam said in a statement.

The move comes after the People's Bank of China strongly devalued the yuan last week and Vietnam's central bank doubled its trading band in response.

It said the latest move aims at ensuring stability for the dong and competitiveness of Vietnamese products.

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