A Stunning Hong Kong Dollar Rally Is Quickly Unraveling
- Seven-day rally pushed currency into overbought territory
- Seasonal factors fueling recent gains considered transitory
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A stunning rally in the Hong Kong dollar is unraveling quickly, with the currency briefly falling back to the weak half of its trading band.
The exchange rate dropped to as low as 7.8015 per greenback, past the midpoint of 7.8 in its allowed trading range. The pullback in the Hong Kong dollar followed a seven-day advance, which this week made the currency the most overbought in more than a year, according to its relative strength index.