HKD - BestExchangeRates Research
Hong Kong Dollar – Market News
For the second time in recent months, Hong Kong’s Finance Secretary, Paul Chan, has issued a warning on the country’s housing market.
“One has to be very careful if one really wants to buy a property in Hong Kong,” said Secretary Chan on Tuesday morning.
“I would not be surprised if there will be a certain adjustment in the market,” he added. View article >
To the surprise of many, the Bank of Canada raised interest rates on Wednesday to 1.0%, from 0.75%, which sent currencies in the Asia-Pacific region tumbling against the Canadian dollar.
The Bank of Canada had been expected to raise the cost of borrowing again this year, following a quarter-point hike in July, but most analysts had been predicting a move in October. View article >
On Wednesday, a single explosive hour formed the basis of what became the Hong Kong dollar’s best day since February 2016.
A little after 6am in London and 1pm in Hong Kong, the Hong Kong dollar suddenly took off, forcing USD/HKD down from levels around 7.826 to 7.8116. And while a 0.18% move might seem negligible when compared to those common in other markets, such moves are rare in USD/HKD due to the manner in which Hong Kong’s currency is pegged to its American counterpart. View article >
For much of 2017 it’s been one-way traffic in the market for Hong Kong dollars.
USD/HKD rose (the Hong Kong dollar fell) in fourteen of the seventeen weeks prior to July 7th, blowing through the midpoint of its allowed 7.75-7.85 range with ease.
The currency had, however, stabilized over much of the past month – a period in which USD/HKD meandered sideways between 7.8015 and 7.814. View article >
Ahead of today’s US non-farm payrolls data, the Hong Kong dollar’s fall continues unabated. This week the currency is holding above 7.81 against the US dollar and reached an eighteen-month low (a USD/HKD high) on Monday of 7.8140.
Hong Kong dollar weakness continues to be driven by the ever-widening gap between local and US interbank interest rates.
At the start of 2017, three-month Hibor (Hong Kong rates) and three-month Libor (US rates) stood at similar levels, but by the end of June Libor held a 52 basis point premium over Hibor, which of course has driven funds out of Hong Kong dollar deposits and into the higher-yielding US dollar. View article >
“We have to warn our people about the dangerous situation of the property market,” said Hong Kong’s Financial Secretary, Paul Chan, today.
In an interview with Bloomberg’s Haslinda Amin, Chan expressed concern about a potential housing market correction in Hong Kong, which is currently the world’s most expensive city for property. In 2016, Hong Kong stood atop Knight Frank’s Prime International Residential Index with USD 1 million buying a home averaging just 20.6 square metres. View article >
Very early this morning in Asia, Bank of Canada (BOC) Council member Carolyn Wilkins lit a fire under the Canadian dollar with her remarks to an audience at the Asper School of Business in Winnipeg, in which she hinted at a possible rate hike by the BOC. Wilkins said that “as growth continues…the Governing Council will be assessing whether the considerable monetary policy stimulus presently in place is still required.”
Since the 2008/09 financial crisis, the Bank of Canada, like the central banks of most other advanced economies, has been forced to adopt an especially easy, or loose, monetary policy. View article >
The Korean won finally made its move yesterday away from the 1130-to-1140 range against the US dollar. The exchange rate for USD/KRW had been trapped between the two prices for much of the previous ten trading days. At the end of yesterday’s New York session – the traditional end of the FX trading day – USD/KRW stood at 1124.30.
Renewed strength in the won has followed the election victory on Wednesday of Moon Jae-in, who succeeds former president Park Geun-hye as South Korea’s leader. View article >
On Friday, Scotiabank – otherwise known as the Bank of Nova Scotia – outlined four factors that would drive Asian currencies higher in 2017.
Investors would “pour funds” into Asian markets on the following grounds:
1) If the Bank of Japan and European Central Bank continue with their stimulus programs, providing “accommodative” levels of liquidity to the economy.
With three consecutive months of positive core inflation in Japan, it is unlikely that the BoJ will be ending stimulus any time soon. View article >
Within the past hour, the Australian dollar has fallen sharply following weaker than expected CPI data.
Figures from the Australian Bureau of Statistics
show that consumer prices grew 0.5% in the first-quarter of 2017 and at an annualized rate of 2.1%.
AUD/USD fell from 0.7539 to 0.7508 on the news and, as of writing, trades at 0.7512.
AUD/JPY fell from 83.90 to 83.50 and trades at 83.58 as of writing. View article >