Hong Kong Monetary Authority continues to intervene in currency markets in April to hold 7.75 line for USDHKD. We explain the move and link to related reports.
USDHKD price action is hugging 7.75 very closely. It is an outer limit of Hong Hong’s currency peg to the USD under the Linked Exchange Rate System. The pair made its deepest penetration to 7.74823 yesterday.
USDHKD approaches 7.75 on LERS after 3 months. Coincides with DXY due for correction, record Rouble weakness and high reference exchange rate fix by PBOC.
Russians buy HKD to beat US sanctions challenge HKMA which has to defend currency peg. Explains why USDHKD did not move with Dollar rally.
7.75 of USDHKD continues to be tested. This post links together some others I have wrote about on this topic including HKMA intervention. With excerpts from Zerohedge and Sovereign Man.
HKMA continues intervention in currency markets to weaken Hong Kong Dollar. There is some relief today as USDHKD rises 1st time in 8 days.
We wondered if HKMA will step in if USDHKD falls below 7.75 and it did. We look at price action to learn from the currency intervention.