Traders Gear Up for Hong Kong to Defend Dollar Peg for 7th Day
- Hong Kong dollar is still trading near the strong end of band
- City seeing more capital inflows than outflows, Paul Chan says
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Traders are preparing for Hong Kong’s de facto central bank to defend the local currency’s peg to the greenback for the seventh straight session, the longest run in five years.
The city’s dollar remains strong despite last week’s interventions, trading at 7.7504 versus the greenback Monday afternoon in Hong Kong. That’s just 4 pips away from the strongest it can technically trade. The Hong Kong Monetary Authority sold HK$1.43 billion ($185 million) of local dollars on Friday, taking the total since it began intervening in April to HK$49.45 billion.