ASIAN CURRENCY WATCH Vietnam's Dong Gone Wild
Countries in Asia are closely monitoring the moves by the State Bank of Vietnam where two recent devaluations have taken nearly 9% off the currency. Given the regions large reliance on exports, Thailand and a host of others are now under increased pressure to match prices.
Analysts say another devaluation may take place and it's possible the dong exchange rate to the USD could reach VND 20,000. Hyper inflation remains a key driver in the developing economy.
For most international hotels and premium grade property in Vietnam developers and owners continue to quote rates in USD as a hedge against devaluation.
Here in Thailand the baht has continued to appreciate, while many of the global markets could continue to capitulate over concerns on a possible economic crisis for the Euro back of Greece's loan defaults.