Vietnam's dong falls after Fitch cuts outlook
SINGAPORE, May 29 (Reuters) - Vietnam's dong fell on Thursday after Fitch Ratings cut the outlook on the country's sovereign rating to negative from stable due to worries over inflation.
The dong's spot rate VND= fell as far as 16,236 per dollar, down slightly from Wednesday's close of 16, 216 per dollar.
The dong in the one-year offshore forwards PNDG stood at 21,000/22,000 per dollar, implying a depreciation of 26 percent in the currency in a year's time.
Fitch on Thursday cut Vietnam's BB-minus sovereign rating to negative from stable, citing rising inflation, which it described as a serious problem for the country.
Vietnam's annual inflation accelerated to 25.2 percent in May from 21.4 percent in April.
The rating cut followed that by Standard & Poor's earlier this month.
The State Bank of Vietnam allows banks to trade the currencies only within a band of +/- 1 percent of the official rate daily on the foreign exchange market. (Reporting by Kevin Yao, Editing by Jacqueline Wong)
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