USD/HKD carry trade shrugs off interventions

Rate differential drives Hong Kong currency higher despite HKMA’s efforts

Breaking-the-USD-HKD-peg

The widening gap between Hong Kong and US dollar interest rates is encouraging traders to open new carry trade positions, despite recent interventions from the Hong Kong Monetary Authority (HKMA) to narrow the spread.

The carry trade is a popular trading strategy that allows investors to borrow at a low interest rate and invest in assets that yield a better return.

In this case investors are borrowing against the lower US rate and investing in the Hong Kong dollar. This is a reversal of the

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact customer services - www.fx-markets.com/static/contact-us, or view our subscription options here: https://subscriptions.fx-markets.com/subscribe

You are currently unable to copy this content. Please contact info@fx-markets.com to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to FX Markets? View our subscription options

You need to sign in to use this feature. If you don’t have a FX Markets account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an indvidual account here: