Opinion: When the Hong Kong dollar weakens too much, bad things tend to happen

no thumb

The Hong Kong dollar is trading at a 14-month low against the US dollar, a threshold that in the past has led to capital outflows that wound up hitting the stock and property markets.
The Hong Kong dollar fell to 7.7849 against the greenback last week, which is the lowest level since February last year.
This is a hair away from the 7.8 level at which the Hong Kong Monetary Authority (HKMA) will start to intervene.
The weak Hong Kong dollar is related to a sharp rise in sterling and the euro….

Enoch Yiu

The author Enoch Yiu

Leave a Response