The Fed Hike Could Force Hong Kong to Defend Its Dollar Peg

Point of View


It might still be too early to share this but this is what I’ve spotted. Spotted a news yesterday that speak on HKD has depreciated, from my chart that goes as far as 2002, it was indeed the time that HKD hit 16years low. It could be even longer period than that.

Have to observe in June if the US increases its interest rate and if that further weaken HKD to 8.00. If so, we will see if HK Central Bank is considering increase interest rate as 1 of the measures. If they really do, it may truly post threats on HK Mortgage Loan.

If the market didn’t close above 8.00 before sliding at 7.77, it will be a price that poses a good consideration for property investors to perform hedging on their assets against currency depreciation.

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