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Hong Kong Dollar Is Surprise Winner as Protesters Blockade Roads

  • Currency climbs for second day, hits strongest since December
  • Its one-month Hibor surges to the highest level since 2008
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Hong Kong Legislature Postpones Debate as Protesters Block Roads
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Hong Kong’s currency is strengthening as protesters take over the city’s main roads in an attempt to stop a planned extradition treaty with China.

The Hong Kong dollar rallied as much as 0.12% to HK$7.8270 per greenback, its strongest since late December. Liquidity has been tightening in the city in recent days, with the one-month interbank borrowing cost jumping to the highest level in more than a decade Wednesday. Bears are also being squeezed by a surge in the cost of shorting the currency, as the local dollar’s 12-month forward points rise to the highest since January 2017.