Latest news with #carryTrades
Bloomberg
5 days ago
- Business
- Bloomberg
A Hong Kong Dollar Drop to Weak End of Band May be Short-Lived
The Hong Kong dollar is expected to spend a shorter amount of time under pressure than recent bouts of weakness, thanks to forecasts for a softer greenback and seasonal factors. The city's currency is slipping ever closer to the weak end of its fixed trading range, as low borrowing costs encourage carry trades where investors borrow it to buy the US dollar and pocket the near-record interest-rate difference.
Bloomberg
21-05-2025
- Business
- Bloomberg
Hong Kong Dollar Falls Toward Weak End of Band on Carry Allure
The Hong Kong dollar edged closer to the weak end of its trading range as sliding local interest rates encouraged traders to increase their borrowing of the currency to fund carry trades. The local dollar slipped to as low as 7.8294 to the greenback, approaching the limit of its allowed band at 7.85. The currency has fallen almost 1% in May to head for the biggest one-month decline since it was pegged to its US peer in 1983.
