Hong Kong Dollar Falls to Weakest Since 2007 as Rate Gap Widens
Currency exchange store in Hong Kong.
Photographer: Xaume Olleros/Bloomberg
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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.