Hong Kong Dollar Jumps Most in 12 Years as Global Stocks Rally
- Currency sank to lowest level since August 2007 on Wednesday
- HKMA says it has no intention of abandoning peg to the dollar
Hong Kong one-hundred dollar banknotes are arranged for a photograph in Hong Kong, China, on Wednesday, Jan. 20, 2016. Hong Kong dollar forwards sank to their weakest level this century, interbank loan rates jumped the most in seven years and the Hang Seng Index tumbled as China's market turmoil fueled speculation the city's 32-year-old currency peg will end.
Photographer: Justin Chin/BloombergHong Kong’s dollar jumped the most in 12 years as the prospect of more stimulus from Japan and Europe ignited a global stocks rebound and curbed bets the city’s currency peg will end.
The local dollar rose as much as 0.4 percent -- the biggest intra-day gain since September 2003 -- before trading up 0.3 percent at HK$7.7950 against its U.S. counterpart as of 2:50 p.m. local time, data compiled by Bloomberg show. The currency, which sank to an eight-year of HK$7.8295 on Wednesday, erased the week’s loss and returned to the strong side of its HK$7.75-HK$7.85 trading range.