Hong Kong Dollar Forwards Surge to Highest Since 2010: Chart

Rising demand for the Hong Kong dollar has driven one-year forward contracts to the strongest level versus the greenback in five years. The rally reflects fading bets for higher U.S. interest rates, a buoyant local equity market and the conversion of yuan deposits held in the city, Goldman Sachs Group Inc. analysts led by MK Tang wrote in a note. The spot rate is still 0.05 percent away from the strong end of its peg to the U.S. dollar.

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