- Rising US rates toy keep USD/HKD trading near the upper end of the 7.75-7.85 range – Credit Suisse
Market news
15 June 2022
Rising US rates toy keep USD/HKD trading near the upper end of the 7.75-7.85 range – Credit Suisse
USD/HKD is now trading near 7.85 as US yields rise. Economists at Credit Suisse do not expect any change to the USD/HKD trading band of 7.75-7.85.
No reason to be concerned about the sustainability of the peg
“USD/HKD has traded near the 7.85 band limit since early May, and we expect this to continue as US yields rise. However, we do not expect any change to the long-standing USD/HKD trading band of 7.75-7.85.”
“The HKMA has sufficient FX reserves to enforce the peg, and an intentional devaluation would negatively impact Hong Kong’s economy.”
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