hong kong dollar Tag

How long can it last? That’s what watchers of Hong Kong’s markets are asking as the gap between local and U.S. interbank rates widens to the most since 2009. The city’s currency peg to the greenback effectively ties its monetary policy to that of the U.S., making the growing differential all the more curious. Now things may be changing, with forward points and interest-rate swaps in Hong Kong’s dollar starting to bottom out. The reasoning is simple: with the currency having fallen to the middle of its permitted band andRead More
For a pegged currency, Hong Kong’s dollar is once again posting some outsized moves. The city’s dollar — linked to the greenback since 1983 — is falling at the fastest pace in 14 months as a widening interest-rate gap with the U.S. reduces the lure of the city’s assets. Local banks, awash with capital and competing for red-hot mortgage demand, are in no rush to follow the Federal Reserve and charge more for loans. That means further weakness ahead for the local currency, according to Mizuho Bank Ltd. and Standard Chartered Plc. “WeRead More