Hong Kong Dollar's Not So Boring Now After Options Top $100 Billion
- Implied volatility in the pegged currency has jumped
- HKMA cash drains, Fed rate hikes seen spurring more swings
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Hong Kong’s dollar is shedding its image as one of the world’s most boring currencies.
As swings in the pegged exchange rate increase to the highest level in six months, traders are piling into wagers that stand to benefit from further volatility. The notional value of outstanding Hong Kong dollar options has swelled to about $103 billion from $73 billion at the start of the year and expectations for future price swings in the currency are jumping at the fastest pace worldwide.