The US Federal Reserve’s hesitancy to commit to further rate cuts has not halted the gradual decline of the US dollar. This global trend, driven by the United State’s mounting fiscal debt and a slow but steady move away from the dollar in international trade, presents a complex puzzle for Hong Kong. As the city’s currency remains pegged to the greenback, it is set to experience a mix of short-term economic boosts and significant long-term risks that demand strategic attention.