RPT-MNI INTERVIEW: BOC Rate Cuts Justified: Ex Adviser Ambler

MNI: ECB LEAVES KEY DEPOSIT RATE UNCHANGED AT 4%

MNI China Daily Summary: Thursday, April 11

MNI BRIEF: EU Risks Damaging Trust With China - MOFCOM

MNI BRIEF: China Small Lenders To Cut Deposit Rates Further

MNI BRIEF: China’s Hainan To Launch “Tourist Wallet”

US EIA:NAT GAS STORAGE +24 BCF TO 2,283 BCF APR 05 WK

PPI: PCE Inputs Portfolio Management, Airfares Tick Higher (2/2)

MNI BRIEF: Poilievre Calls QE 'Scam' And Would Limit BOC Remit

MNI: Growth Drag From Net Zero Carbon Goal Can Be Offset-OECD

MNI BRIEF: Lawmakers Signal Tough Hearing For BOC's Macklem

© 1982-2023 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

HKD Still Flirts With Weak End Of Permitted Trading Band After HKMA Intervention

HKD

Hong Kong dollar continues to touch the weak end of its permitted trading band vs. the greenback in the wake of the HKMA's intervention to defend the currency peg.

  • The monetary authority conducted its first FX intervention since 2019 and used currency reserves to buy about HKD1.59bn after USD/HKD tested the upper end of the HKD7.75-7.85 range late doors Wednesday.
  • Note that HKMA Chief Executive Yue told the Legislative Council on May 3 that "the weakening of the HKD's exchange rate was a result of the U.S. interest rate rise, which has led to the capital outflow from the city."
  • Although Yue said the intervention was "nothing to worry about," the prospect of liquidity being sapped by further interventions is somewhat problematic at a time when the local economy is under pressure from COVID-19 countermeasures implemented in Hong Kong and mainland China.
  • 3-month HIBOR rose to 0.79054% after the intervention, reaching its highest levels since June 29.
BulletEM BulletEmerging Market NewsHomepage
BulletEM BulletEmerging Market NewsHomepage

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.