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在线翻译:
szdaily -> Markets -> 
HKMA moves to defend HK dollar
    2018-04-16  08:53    Shenzhen Daily

THE Hong Kong Monetary Authority bought the local currency Friday, as part of its first intervention in foreign exchange markets since 2015 after the Hong Kong dollar hit the weaker end of its trading range, nudging up a key lending rate that could push borrowing costs higher.

“I reiterate that the HKMA will buy Hong Kong dollars [HKD] and sell U.S. dollars at 7.85 level to ensure that the HKD exchange rate will not weaken beyond 7.8500,” Norman Chan, chief executive of the Hong Kong Monetary Authority (HKMA), said in a statement.

The Hong Kong Monetary Authority stepped into the currency market and bought HK$3.368 billion (US$429.06 million) in Hong Kong dollars late in the U.S. session Friday.

That was in addition to HK$3.038 billion in Hong Kong dollars that the HKMA bought earlier in the U.S. session Friday.

Including another HK$3.258 billion in Hong Kong dollars bought starting Thursday, the HKMA has mopped up HK$9.66 billion in Hong Kong dollars from the foreign exchange market.

The Hong Kong dollar is pegged at 7.8 to the U.S. dollar, but can trade between the high and low limits of 7.75 and 7.85. Under the currency peg, the HKMA is obliged to intervene when the Hong Kong dollar hits 7.75 or 7.85 to keep the band intact.

This was the first time since the current trading band was introduced in 2005 that the weak-side convertibility undertaking (CU) at 7.85 to keep the Hong Kong dollar closely pegged to the U.S. currency had been triggered.

The HKMA said the undertaking was triggered in London trading hours.

The Hong Kong dollar touched the lower end of the HKMA’s trading band target as the interest rate gap between the U.S. dollar and the local currency widened.

As Hong Kong pegs its currency to the dollar, its money market rates should mirror those of its U.S. counterpart, but the gap has now widened to 117 basis points since the U.S. Federal Reserve started raising interest rates from ultra-low levels adopted during the 2008 financial crisis.

Hong Kong’s markets have remained flush with excess cash, keeping a lid on Hong Kong dollar interest rates.

Most market participants do not see the current bout of weakness as a threat to the currency peg even though high liquidity stemming from the mainland and overseas investment into Hong Kong’s markets is anchoring short-term interest rates and putting downward pressure on the currency. (SD-Agencies)

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