Hong Kong dollar HKD forecasts 2022
HKD forecasts are influenced by three factors; the coronavirus impact, changes in the delta between interest rates in the US and the rest of the world (as HKD is pegged to USD) and also the trade war between China and the US.
BER ResearchHong Kong dollar outlook
HKD in March dropped lower against USD in its 7.75 – 7.85 managed trading range (a weaker HKD).
Having previously enjoyed minimal COVID cases, Hong Kong has since been battling a dramatic wave of infections against Omicron, fortifying the city’s zero-COVID stance and further isolating the city from global reach.
Draconian local restrictions are to be relaxed however pessimism will continue surrounding the city’s economic outlook for 2022.
| Date | USD/HKD | Change | Period |
|---|---|---|---|
20 Jun 2022 | 7.8503 | 0.1% ▼ | 2 Week |
05 Apr 2022 | 7.8338 | 0.2% ▲ | 3 Month |
04 Jul 2021 | 7.7656 | 1% ▲ | 1 Year |
05 Jul 2017 | 7.8070 | 0.5% ▲ | 5 Year |
06 Jul 2012 | 7.7540 | 1.2% ▲ | 10 Year |
09 Jul 2002 | 7.7999 | 0.6% ▲ | 20 Year |
Hong Kong Dollar Forecasts & News
The Hong Kong dollar has been pegged to the US dollar since 1983. Since 2005 the HKMA has kept the currency trading at a range between HK$ 7.75 and HK$7.85.
When HKD moves too close to either limit, the HKMA acts by either buying or selling the currency. So in 2020, the HKMA intervened in the market by selling more than HK$50 billion because of high demand for the Hong Kong dollars from demand due to several large IPOs on the Hong Kong Stock Exchange, including JD.com and Tencent.
Since April 2020, authorities have intervened multiple times to prevent the currency from strengthening past its permitted trading maximum with the U.S. dollar USD/HKD = 7.75, more interventions are to be expected if the Hong Kong dollar continues to hit the strong end of its trading band.
AUD to HKD
Mid-year the AUD/HKD has fallen back to the 5.4 level mainly due to USD strength (HKD is fixed to USD).
Earlier in the year AUD/HKD had risen to 5.8 as Australia profited from energy prices hikes driven by the Russian invasion of Ukraine.
This resumed weakness matches last year when the Aussie dollar saw a long slide against the HK dollar due to AUD weakness against the US dollar.
You can also read our full Foreign Exchange Guide to Hong Kong.
Disclaimer: Please note any provider recommendations, currency forecasts or any opinions of our authors should not be taken as a reference to buy or sell any financial product.