The HKD has been garnering attention in.......>

FOREX: The HKD has been garnering attention in recent times as USDHKD nears the

top of the trading band permitted by the HKMA (7.85), last trading at ~7.8435.

- HKMA chief Chan took to the wires in early European hours on Thursday, noting

that people shouldn't worry about the weakening of the HKD, as he stated that

the HKMA will ensure that the pair doesn't exceed 7.85.

- Chan also noted that the HKMA has no immediate plan to issue additional bills.

- HSBC say that this leaves them with the following tools to defend the top of

the band, if it gets that far; the discount window, direct intervention in the

FX market and a mandate introduced in 1988 (still unused) allowing the HKMA to

impose negative nominal interest rates should speculative flows become too

great.