HKD in the markets
The Hong Kong dollar has gained value in 2019 despite a serious escalation in US-China trade tensions, mainly because the US dollar, to which HKD is pegged, is attracting safe-haven inflows. By May-17, against a basket of important currencies, HKD was worth 2 percent more year-to-date, and was only 0.5 percent away from making a 2-year high.
HKD was doing particularly well against the Australian dollar. It was, at the time of writing, valued 18 percent higher than 2018 lows against AUD and needed only a further 2.3 percent to reach a 10-year high. Though HKD was meeting significant resistance in mid-May at the 5.4 per AUD level, a break of this could spark significant appreciation.
Scotiabank admitted defeat in April when it said that USD, and therefore HKD, was likely to be “stronger for longer.” It had long held a bearish view on both currencies.
HSBC said in May to expect higher HKD values relative to the Australian dollar and New Zealand dollar, and against riskier emerging market currencies.
In May, HSBC warned against thinking that USD, and therefore HKD, had gotten too high. The bank highlighted the “desolation and destruction” (an exaggeration) facing other economies, and the lack of value-maintaining currency alternatives.
Hong Kong dollar – Historical Rates
|1 Week||-0.01%||7.8496||16 May 2019|
|1 Month||+0.08%||7.8430||23 Apr 2019|
|6 Months||+0.3%||7.8256||24 Nov 2018|
|1 Year||+0.01%||7.8480||23 May 2018|
|5 Years||+1.23%||7.7533||24 May 2014|
|10 Years||+1.26%||7.7516||25 May 2009|
*For period to 23-May 21UTC when USD/HKD was 7.8490
You can also read our full Foreign Exchange Guide to Hong Kong.
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Last update: 22 May, 2019
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Posted: 16 May, 2019
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Last update: 16 May, 2019