Vietnam Devalues Currency, Hikes Rates
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Vietnam devalued in currency 5% and hiked interest rates from 7% to 8%, in a move to combat inflation, rein in lending and bolster its currency.
The timing of the move surprised analysts, who had not expected Vietnam to start nudging up rates until early 2010, according to the New York Times article.
Vietnam is now one of only a handful of countries to raise the cost of borrowing as the global economy stabilizes.
Many traders will look to see if the news will have an impact on the U.S. dollar, which has seen its own weakness due to the easy money policy of the Federal Reserve. Many don't expected the U.S. to raise rates until mid-2010, but it could be sooner if inflation hits. Traders have been playing Gold and other commodities on anticipation of a weaker U.S. dollar and expected inflation.
Related ETFs:
The timing of the move surprised analysts, who had not expected Vietnam to start nudging up rates until early 2010, according to the New York Times article.
Vietnam is now one of only a handful of countries to raise the cost of borrowing as the global economy stabilizes.
Many traders will look to see if the news will have an impact on the U.S. dollar, which has seen its own weakness due to the easy money policy of the Federal Reserve. Many don't expected the U.S. to raise rates until mid-2010, but it could be sooner if inflation hits. Traders have been playing Gold and other commodities on anticipation of a weaker U.S. dollar and expected inflation.
Related ETFs:
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