Economics
Hong Kong Intervenes to Defend Currency Peg for First Time Since May
- HKMA buys HK$4.5 billion in two days as currency touches 7.85
- Hong Kong dollar under pressure amid emerging-market turmoil
Photographer: Jerome Favre/Bloomberg
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Hong Kong intervened for a second day to defend its currency’s peg to the dollar after it fell to the weak end of its trading band.
The Hong Kong Monetary Authority bought HK$2.355 billion ($300 million) of local dollars on Wednesday evening, according to the de facto central bank’s page on Bloomberg. That followed its purchase of HK$2.159 billion during New York trading hours Tuesday, its first intervention in three months. The city’s currency traded at HK$7.8500 as of 5:46 p.m. local time. The permitted trading range for Hong Kong dollar is HK$7.75-7.85 against the dollar.