The Hong Kong dollar weakened on Tuesday pressured by a rebound in the US dollar against major currencies and amid a decline in local stocks. In its latest bid to support the currency, the Hong Kong Monetary Authority (HKMA) stepped in late on Tuesday afternoon and bought HK$390 million in exchange for US dollars from banks. The local currency was trading at 7.7998/99 against the greenback, just shy of its 7.80 peg rate.
Under the currency board system, the HKMA is committed to defend the local currency's pegged rate of HK$7.80 by buying Hong Kong dollars in exchange for US dollars.
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