Economics
Hong Kong Currency Intervention Seen Intensifying This Month
- HKMA spent HK$33.1 billion in August to support local currency
- Outflows due to Fed raising rates in September may weaken HKD
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The Hong Kong Monetary Authority could be even busier with currency buying in September.
The city’s de facto central bank, which spent HK$33.1 billion ($4.2 billion) last month as the Hong Kong dollar fell to the weak end of its trading band, will likely continue making purchases, according to analysts. That’s because the Federal Reserve will probably raise rates in September, drawing funds out of Hong Kong and keeping the local dollar weak.