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Hong Kong Tightens Covid Restrictions; HKD Weaker On The Session

HKD

Covid restrictions in Hong Kong are getting stricter, the region will shut a number of establishments including gyms and beauty parlours, as well as closing dine-in restaurants from 6pm and encouraging work from home.

  • USD/HKD has risen slightly as HKD sees some weakness on Covid concerns, DXY has weakened slightly but is still off lows seen yesterday which is helping keep the pair higher. USD/HKD last trades at 7.7511, off session highs of 7.7514
  • Elsewhere Hibor has risen for a tenth straight session, up around 2bps to 0.23143%, the spike has driven the Hibor-Libor spread to the narrowest since November 2019, but it should be remembered that in November one-month Hibor fell to the lowest rate in almost 10-years at 0.12018%.

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