The Hong Kong dollar fell to its lowest level in a week as the city’s defense of its currency peg climbed to US$6.2 billion. The Hong Kong Monetary Authority sold HK$3.72 billion worth of local dollars on Wednesday, taking the total amount since April to HK$48.1 billion. The local currency weakened to HK$7.7509 versus the greenback as of 9:06 a.m. today, Bloomberg reports. A gauge of the Hong Kong dollar’s one-month rates known as Hibor has fallen for nine sessions to the lowest since May 21. They were still 60 basis points higher than comparable U.S. rates as of Tuesday, making a carry trade appealing.

Source: The Standard June 11, 2020 04:18 UTC