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Hong Kong Buys Local Dollars For a Second Day to Defend Peg

  • Currency falls to weak end of trading band at 7.85 per dollar
  • The 12-month Hibor climbs to 2.85%, its highest since 2008
Visitors sit on a bench along a promenade in the Central district of Hong Kong, China.

Visitors sit on a bench along a promenade in the Central district of Hong Kong, China.

Photographer: Louise Delmotte/Bloomberg
Updated on

Hong Kong bought local dollars for a second straight day, as the currency fell to the weak end of its trading band on mounting speculation of an increasingly hawkish Federal Reserve.

The Hong Kong Monetary Authority bought HK$25.6 billion ($3.3 billion) worth of the city’s dollars on Wednesday, after the currency once again traded on the weak end of its permitted trading range. It came in transactions late in the Asia day and then late in the US day. It bought a total of HK$13.7 billion the previous day to support the currency.