Hong Kong Dollar Touches Key Level for First Time Since 2005
- HKMA says it will buy currency if there are bank requests
- Currency has been weakening due to rate gap with U.S.
This article is for subscribers only.
Hong Kong’s dollar fell to the weak end of its permitted band for the first time since the range was imposed in 2005, a warning sign for a city where easy money has stoked a property boom and underpinned the stock market’s record rally.
The spot rate reached HK$7.85 per dollar on Thursday, after threatening to do so since late March. The Hong Kong Monetary Authority, which is obligated to defend the band, said in a statement that it stands ready to fulfill any requests from banks to support the currency.