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Hong Kong Dollar Falls to Weakest Since 2007 as Rate Gap Widens

Currency exchange store in Hong Kong. — Currency exchange store in Hong Kong.
Photographer: Xaume Olleros/Bloomberg

By

Bloomberg News

February 28, 2018, 8:13 AM UTCUpdated onFebruary 28, 2018, 9:03 AM UTC

Hong Kong’s currency fell to its weakest level since August 2007 as low lending costs in the city made it lucrative to borrow the currency to buy the U.S. dollar.

The exchange rate dropped to HK$7.8298 per dollar on Wednesday, approaching the weak end of its trading band. Interbank lending rates in Hong Kong are the lowest since 2008 versus those in America.