The USD to HKD exchange rate is currently range-bound.
Key factors include the anticipated interest rate cuts by the Federal Reserve, likely leading to a weaker USD in the first half of 2026. The stability of the HKD is supported by the Hong Kong Monetary Authority's plans to maintain interest rates. Additionally, improvements in global economic growth and rising commodity prices should sustain demand for the Hong Kong Dollar.
Over the next 1-3 months, forecasts suggest that the USD/HKD pair will remain close to current levels, potentially within a narrow range.
An upside risk could emerge if the U.S. economy shows stronger-than-expected growth, boosting the dollar. Conversely, a downside risk lies in the ASEAN's shift to reduce reliance on the USD, which may further weaken its position against currencies like the HKD.