Traders Skeptical That Trump Will Break Hong Kong’s Dollar Peg
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A proposal by some of Donald Trump’s advisers to undermine Hong Kong’s currency peg was met with skepticism by traders and analysts, who said such a move would be difficult to implement and risk hurting U.S. interests as much as it would punish China.
Doubts that the idea would gain traction within the Trump administration were reflected in markets on Wednesday, with the Hong Kong dollar holding in a tight range near the strong end of its trading band against the greenback. An increase in the Hong Kong dollar’s 12-month forward points suggested a slight pickup in hedging demand, but they remained well below a May peak.