Hong Kong Intervenes to Prop Up Dollar for First Time Since 2019
- HKMA buys currency to prevent it from falling past weak end
- Currency allowed to trade between 7.75 to 7.85 per greenback
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Hong Kong intervened to prop up its currency for the first time since 2019, putting further upward pressure on interest rates in an economy already reeling from strict pandemic border controls and a shaky property market.
Capital outflows fueled by rising interest rates in the US sent the Hong Kong dollar to the weak end of its permitted 7.75-to-7.85 per greenback trading range late Wednesday. The Hong Kong Monetary Authority bought HK$4.08 billion on top of its HK$1.59 billion purchase to support the currency, which was still trading at the weak end as of 5:25 p.m. local time on Thursday.