FX Update: The HK Dollar Peg and US Economic Policy
Mellor, Neil, Global Finance
Outside of the United States, nowhere else is the impact of current Fed policy being felt more keenly than in Hong Kong. The Special Administrative Region's (SAR) currency board has demanded an ultraaccommodative monetary policy akin to that of the Fed and has shackled the HKD to the USD - a currency that has lost more than 10% of its value (on a trade weighted basis) since March and has recently neared all-time lows. The attractions of a fixed and therefore highly competitive currency and a market buoyed by ample liquidity are illustrated by custody data from BNY Mellon, which have shown a steady rise in foreign portfolio investment since the end of Ql . Over this period, the Hang Seng …
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Publication information: Article title: FX Update: The HK Dollar Peg and US Economic Policy. Contributors: Mellor, Neil - Author. Magazine title: Global Finance. Volume: 23. Issue: 11 Publication date: December 2009. Page number: 5. © Global Finance Media Inc. Feb 2009. Provided by ProQuest LLC. All Rights Reserved.
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