The Hong Kong dollar advanced to its strongest level since April 2017, as traders unwound short positions on expectations that borrowing costs will rise amid seasonal demand for cash and potential new stock listings.THE Hong Kong dollar advanced to its strongest level since April 2017, as traders unwound short positions on expectations that borrowing costs will rise amid seasonal demand for cash and potential new stock listings.
Along with the potential for large stock listings and heightened cash demand, the gains were also supported by investors seeking haven assets amid rising Middle East tensions, said Alan Yip, a senior foreign-exchange strategist at Bank of East Asia Ltd, who sees the currency strengthening to 7.76 per greenback in the next few weeks.
Capital inflows into Hong Kong stocks also helped send the currency higher, according to Gao Qi, a strategist at Scotiabank in Singapore. Mainland investors bought shares listed in the city for a 35th consecutive day on Friday through the stock connect, the longest buying streak since September.Friday's advance follows the Hong Kong dollar's largest monthly rally since 2008 in December, which was fuelled by a seasonal spike in interbank interest rates.
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Source: BusinessTimes - 🏆 15. / 51 Read more »