The Hong Kong Monetary Authority has intervened to weaken the local currency more than any year since the global financial crisis over a decade ago.
Including the HK$10.9 billion ($1.4 billion) sold yesterday, HKMA has sold a total of HK$230.6 billion year-to-date. This surpassed the HK$227 billion sold for the full year of 2015, the previous one-year record since 2009.
Aside from increasing Hong Kong dollar demand for offerings such as the upcoming blockbuster Ant IPO, the currency’s movement has so far withstood concerns emerging last year about the sustainability of the peg due to ongoing political instability.
The local currency is pegged against the greenback in a tight trading range of $1 to 7.75-7.85 Hong Kong dollars.
