The Hong Kong Monetary Authority (HKMA) has recently bought the local currency, the Hong Kong dollar (HKD) around 5 a.m. to 6 a.m., to keep it from the falling below the weak end of its trading band, according to Bloomberg. The HKD has fallen to the lower end of its trading band at HK$7.85 repeatedly this month, courtesy of its interest rate discount to the USD. That has forced the HKMA to spend $1.5 billion to defend the exchange-rate peg, leading to an uptick in the interbank borrowing costs. Also, liquidity is thin during the gap between NY close and Asia open and so large orders have an abnormal impact on the exchange rate, which pushes the HKMA into action. FX Street FX Street FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions. View All Post By FX Street FXStreet News share Read Next ETH/USD Technical Analysis: ETH/USD trades for $140 as more growth is expected FX Street 4 years The Hong Kong Monetary Authority (HKMA) has recently bought the local currency, the Hong Kong dollar (HKD) around 5 a.m. to 6 a.m., to keep it from the falling below the weak end of its trading band, according to Bloomberg. The HKD has fallen to the lower end of its trading band at HK$7.85 repeatedly this month, courtesy of its interest rate discount to the USD. That has forced the HKMA to spend $1.5 billion to defend the exchange-rate peg, leading to an uptick in the interbank borrowing costs. Also, liquidity is thin during the gap between NY close… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.
