Hong Kong reins back local dollar amid capital inflow ahead of US rate cut decision

Quick Summary:

In its first market intervention in two years, the city’s de facto central bank bought US$6.005 billion at HK$7.75.

Similar interventions are likely to occur if the US moves to cut interest rates in the coming months, which would prompt more capital inflow to Hong Kong, according to some bankers.“The recent strength of the Hong Kong dollar is mainly driven by increased demand for the currency related to equity investment activities, which has supported the exchange rate,” an HKMA spokesman said in the statement.“Additionally, the recent appreciation of several regional currencies against the US dollar has also contributed to the strengthening of the Hong Kong dollar,” he said.“The HKMA will continue to closely monitor the market situation and ensure Hong Kong’s money and foreign exchange markets operate in an orderly manner.

That intervention comes less than a week ahead of the US Federal Reserve’s next meeting on Thursday, when it is expected to discuss whether to lower interest rates.

---

More Pictures

---

Read Quick SummarySave Time

or

Article Details

Author / Journalist: Enoch Yiu

Category: Business

Markets: Hong Kong

Topics: City’s Recent Intervention Dollar Market Hong Years Billion Currency First Kong

Source Website Secure: Yes (HTTPS)

News Sentiment: Neutral

Fact Checked: Legitimate

Article Type: News Report

Published On: 2025-05-03 @ 13:09:36 (17 hours ago)

News Timezone: GMT +8:00

News Source URL: scmp.com

Language: English

Article Length: 244 words

Reading Time: 2 minutes read

Sentences: 5 lines

Sentence Length: 49 words per sentence (average)

Platforms: Desktop Web, Mobile Web, iOS App, Android App

Copyright Owner: © SCMP

News ID: 28328027

View Article Analysis

About SCMP

Main Topics: Business

Official Website: scmp.com

Update Frequency: 3 posts per day

Year Established: 1903

Headquarters: Hong Kong

News Last Updated: 15 hours ago

Coverage Areas: Hong Kong

Ownership: Independent Company

Publication Timezone: GMT +8:00

Content Availability: Worldwide

News Language: English

RSS Feed: Available (XML)

API Access: Available (JSON, REST)

Website Security: Secure (HTTPS)

Publisher ID: #42

Publisher Details

Frequently Asked Questions