The Vietnamese dong ended flat against the dollar on Tuesday after the central bank raised its policy rate by 100 basis points, as some analysts warned the currency is set to see further falls despite more tightening expected.

At 08:15 GMT, the dong was trading at 24.830 against the U.S. currency, unchanged from Monday's close and after nudging up 0.08% earlier in the session.

So far this year, the dong has fallen 9%, following the U.S. Federal Reserve's aggressive rate hikes to tame inflation.

Capital Economics said in a note on Tuesday further rate hikes by Vietnam's central bank were expected "with the dong likely to remain under downward pressure."

It said authorities were concerned about the risk of imported price pressures from a weaker currency, even though inflation was much lower in Vietnam than in other parts of the region.

Meanwhile, Vietnam's benchmark stock index closed up 1.17% to 997.7 on Tuesday, rebounding after hitting the lowest level since November 2020 earlier in the session. (Reporting by Khanh Vu in Hanoi Editing by Ed Davies)