Hong Kong’s Currency Peg Defense Increases to $560 Million
- Local dollar hits strong end of band for a second straight day
- Interest-rate differential is supporting the exchange rate
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Hong Kong’s de-facto central bank intervened once again to defend its currency peg as the local dollar touched the strong end of its trading band.
The Hong Kong Monetary Authority sold HK$2.79 billion ($360 million) of the city’s currency in the early hours of Wednesday local time, according to its page on Bloomberg, after sales of HK$1.55 billion late Tuesday. The aggregate balance, a measure of interbank liquidity, will increase to HK$63.4 billion.