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Hong Kong Buys Local Dollars to Defend Currency Peg on Greenback
Hong Kong bought local dollars for the first time since mid-May, as the currency fell to the weak end of its trading bank amid recent strength in the greenback. The Hong Kong Monetary Authority bought HK$4.396 billion ($560 million) worth of the city’s dollars to support the currency, which was trading at the weak end of its trading band on Tuesday. Capital outflows fueled by bets on rising interest rates in the US sent the Hong Kong dollar to the weak end of its permitted 7.75-to-7.85 per greenback trading range. The aggregate balance will decrease to about HK$315.6 billion on June 16. “The Federal Reserve’s ... (full story)