Hong Kong's Yuan Interbank Rates Rise to Record Highs
- Currency erases discount to onshore rate as intervention seen
- Conscious effort to make it harder for speculators: strategist
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The cost of borrowing yuan in Hong Kong surged to records for all contracts as China’s efforts to prop up its exchange rate and restrict capital outflows soaked up supplies of the currency.
The city’s benchmark rates for loans ranging from one day to a year rose to levels unprecedented since the Treasury Markets Association started compiling the fixings in June 2013. The overnight Hong Kong Interbank Offered Rate climbed 53 percentage points to 66.82 percent on Tuesday, while the one-week rate jumped 22.6 percentage points to 33.8 percent.