Hong Kong dollar plumbs to the weak end of its trading band as US rates rise | South China Morning Post

Surging US yields and a surfeit of cash in the local banking system have pushed the Hong Kong dollar to its weakest since late-2019, near levels at which the central bank might be forced to defend the peg. The Hong Kong dollar is pegged to a tight band of between 7.75 and 7.85 versus the US dollar. It fell to as low as HK$7.8445 last week, its weakest since October 2019. Under Hong Kong's linked exchange rate system, the de facto central bank Hong Kong Monetary Authority (HKMA) is obliged to buy its currency to stop it breaching the top…