The Hong Kong dollar traded at 7.8498 per US dollar on Wednesday, hovering near the 7.8500 lower limit of a trading band introduced in 2005. Photo: EPA-EFE

Hong Kong’s monetary authority steps in for the second time in a week to prop up the local dollar as interest rate gap widens

  • The city’s de facto central bank spent HK$3.925 billion (US$500 million) in its latest outing to buy the Hong Kong dollar and keep it within the limits of a trading band
  • A key driver for the deterioration of the local currency is a widening gap between Hong Kong dollars and the US dollar, caused by ample liquidity and lacklustre loans demand in the city’s banking system
Topic |   Hong Kong Monetary Authority (HKMA)

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The Hong Kong dollar traded at 7.8498 per US dollar on Wednesday, hovering near the 7.8500 lower limit of a trading band introduced in 2005. Photo: EPA-EFE
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Karen Yeung

Karen Yeung

Karen Yeung joined the Post in 2017 after more than 15 years' experience on global newswires in Hong Kong and Shanghai. She spent eight years in Shanghai and has received awards for best feature, analysis and agenda-setting.