Yes, another one. And closer again to its trading band boundary. Currently circa 7.8452
- The HKD is pegged to the USD (Hong Kong Monetary Authority peg is at 7.8, allows it to trade between 7.75 and 7.85)
- The prospect of a higher cash rate in the US after the FOMC on Wednesday widens the interest rate differential between the USD and HKD
Monthly chart (not as far back as 30 years years though!):
The HKMA will intervene (or, they should anyway) if HKD weakens to the bottom end of the band. I posted more on HKMA actions here earlier in the month:
