Hong Kong Buys $2 Billion to Keep the City's Currency Pegged
- HKMA intervenes for first time since April to defend peg
- ANZ says yuan devaluation spurred demand for Hong Kong dollars
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Hong Kong’s de facto central bank stepped in for the first time in more than four months to prevent the city’s currency from breaking out of the strong end of its pegged range against the U.S. dollar.
The Hong Kong Monetary Authority said it bought $1.2 billion late Tuesday at HK$7.75 a dollar, the upper limit of a band that triggers intervention, taking today’s injection to $2 billion. It last intervened in April, buying $9.2 billion in total during the month. The HKMA “will monitor the market developments closely and maintain the stability of the Hong Kong dollar,” it said in a statement.