USD/HKD has hit a 3-month low (HKD a 3 month high) circa 7.8325:
It was only last week that the Hong Kong Monetary Authority (HK's central bank ) was intervening to support the HKD. The HKMA have held the HKD in its desired trading band pegged against the USD for decades.
As for rates:
- Hong Kong overnight interbank offered rate jumps 92 bps to 4.4381%, highest since late 2019
- One-week HIBOR up 48 bps to 4.10952%, highest since December 2022
- One-month HIBOR up 38.5 bps to 4.15762%, highest since January 2023
Official rates set by the HKMA in HK are bound to US official rates, inextricably linked to the pegging of the curency to the USD.
