Hong Kong’s policymakers are getting close to stage an unusual intervention to cap the local dollar’s gains, as the greenback plummets due to raging trade tensions between US and China.
The city’s currency has been hovering near the strong end of its 7.75-7.85 per dollar allowed trading range since last week, as the greenback slumped on bets the trade war will hurt the US economy. A breach of the topside of the range would see Hong Kong sell local dollars to cool its rally and maintain the currency’s peg to the greenback.
The last time the Hong Kong Monetary Authority ...
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