Hong Kong dollar nears 7.85 weak limit as carry trades build
Why it matters: A wider US-Hong Kong rate gap and falling Hibor are raising the odds of Hong Kong Monetary Authority intervention.
Subject
#Hong Kong Dollar
Hong Kong funding squeeze dulls dollar carry trade as Hibor climbs
Why it matters: higher Hibor could unwind bets against the Hong Kong dollar and raise mortgage costs in the city’s rate-linked market.