Hong Kong dollar stays at top end of bank despite HKMA attempts to sell it down
The Hong Kong dollar remains at the top end of the peg’s trading band on Monday despite the late Friday sale of HK$14.88 billion by the city’s de-facto central bank.
The local currency hit 7.7501 against the US dollar at 10:30 am on Monday, the upper limit of the peg’s trading range.
The Hong Kong Monetary Authority, the city’s de facto central bank, has been steadily intervening this month as inflows from overseas investors chase local equities and has put the peg under heavy strain.
HKMA has sold HK$71.494 billion so far in April.The Hong Kong dollar has come under pressure as overseas investors piled into the local equity market, driving the market to almost daily fresh 7-year highs.
Analysts say they expect this trend to continue given the perceived cheapness of Chinese companies traded in Hong Kong compared to their mainland listings.
The onshore yuan spot price strengthened 0.0021 per cent to 6.122 against the US dollar on Monday morning. The offshore yuan weakened 0.0036 per cent to 6.194 against the dollar at 10:30 am.
