HK dollar touches strong-side peg, no HKMA move yet

The Hong Kong dollar has reached the strong-side convertibility level of 7.75 per US dollar for the first time since late 2020, according to LSEG data. The Hong Kong Monetary Authority has not intervened yet.

The dollar peg - officially known as the Linked Exchange Rate System - affixes the Hong Kong dollar to the greenback at HK$7.80 per US dollar within a bandwidth of HK$7.75-HK$7.85.

The HKMA typically acts when the Hong Kong dollar touches either end of the trading band. 

In contrast, the Hong Kong dollar once hit the weak-side level in 2022 and 2023, prompting HKMA action.

STAFF REPORTER