The Hong Kong Monetary Authority (act as the central bank in HK) bought Hong Kong dollars during New York trading hours Tuesday (news via Bloomberg) )

  • To defend the peg
  • bought HKD 2.159bn (brings the year's intervention total to around 70 bn HKD
  • HKMA had intervened previously back in May

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The background to this is a widening interest rate gap between HK and US

  • Has served to weaken the HKD, capital outflow from the country

HKD is pegged to the USD with lower and upper band at 7.75 and 7.85

  • Been pegged a lazy 35 years (up your Mr Jordan …)