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Can political unrest in Hong Kong break its currency peg?
Three months of anti-government protests have thrown Hong Kong into its deepest crisis in decades, pounding the financial hub’s economy and stock market and adding to its Sino-U.S. trade war woes. The Hong Kong dollar is pegged in a narrow band around HK$7.8 per U.S. dollar, but has for weeks languished at the weak end as unrest has deepened, shedding 0.8% since early July. Bets in the market suggest some think the peg could falter. Can the Hong Kong dollar withstand the selling pressure? The entrepot city is facing its first recession in a decade, shaken by slowing Chinese growth, trade-war tensions and the ... (full story)