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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.
HKD
The HKMA bought a further HKD9.255bn to prop up the local currency and defend its peg to the U.S. dollar, after earlier purchasing HK4.396bn.
- Steep addition of hawkish Fed bets triggered capital outflows that pushed USD/HKD to the upper end of its permitted HKD7.75-7.85 trading range.
- The HKMA refrained from intervening when USD/HKD touched HKD7.85 on Monday for the first time in almost a month.
- However, continued pressure towards the weak end of the local currency's trading band forced the Monetary Authority to step in.
- 3-Month Hibor climbed sharply at the start to the week, hitting 1.04% on Tuesday. The rate last topped 1% almost exactly two years ago.
- Spot USD/HKD trades flat at HKD7.8500, still at the ceiling of its trading band.
Fig. 1: 3-Month vs. 1-Month Hibor
Source: MNI - Market News/Bloomberg
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.
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