Hong Kong Dollar Set for Worst Month Since 1985
- Stock market slump has reduced demand for the currency: BofA
- Exchange rate has turned more volatile as liquidity shrinks
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The Hong Kong dollar is poised for its biggest monthly retreat since 1985 as interest rates in the city drop and pessimism toward China’s economy weighs on the stock market.
The currency has declined 0.6% in August — or almost half the maximum swing possible under its trading band with the greenback — to approach the weak end of its permitted range.