# Explained: The Vietnamese Dong and US Interest Rates

> The Federal Reserve raised rates by 75 basis points, strengthening the US dollar. The article explains how the State Bank of Vietnam manages the dong as a managed float and widened its trading band from 3% to 5% on October 17.

- Date: 2022-11-04 · published 2022-11-04T12:00:00.000Z
- Category: macro · region Vietnam · magnitude low
- Page: https://feedsoft.ai/events/38979-explained-the-vietnamese-dong-and-us-interest-rates
- Commodities: [Vietnamese Dong (VND per USD)](https://feedsoft.ai/c/USDVND.md)

## Why it matters

Dollar strength from US rate hikes raises the cost of imported feed ingredients for Vietnam, and the wider band gives the dong more room to weaken.

## Sources

- vietnam-briefing.com: https://www.vietnam-briefing.com/news/federal-reserve-interest-rate-vietnam.html/

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.