BLBG:Hong Kong Dollar Touches HK$7.75 Per Dollar, Strong End of Peg
The Hong Kong dollar touched HK$7.75 versus the greenback in New York trading hours, a move that may trigger intervention by the Hong Kong Monetary Authority.
The Hong Kong dollar is allowed to trade between HK$7.75 and HK$7.85. When the currency reaches the strong end of its permitted trading range, the HKMA offers to buy U.S. dollars to prevent further appreciation. The linked exchange rate was adopted in 1983 when negotiations between China and the U.K. over the city’s shift to Chinese control spurred capital outflows.
The Hong Kong dollar touched HK$7.75 versus the greenback in New York trading hours, a move that may trigger intervention by the Hong Kong Monetary Authority.
The Hong Kong dollar is allowed to trade between HK$7.75 and HK$7.85. When the currency reaches the strong end of its permitted trading range, the HKMA offers to buy U.S. dollars to prevent further appreciation. The linked exchange rate was adopted in 1983 when negotiations between China and the U.K. over the city’s shift to Chinese control spurred capital outflows.
