Hong Kong Intervenes to Defend FX Peg as Local Currency Drops

Hong Kong’s de-facto central bank spent more than a billion dollars propping up the city’s currency, as it sought to defend a peg that has been strained by volatility in the greenback.

The Hong Kong Monetary Authority took HK$9.42 billion ($1.2 billion) out of circulation after the exchange rate touched the weak end of its dollar peg, marking the first time it stepped in to offer support since May 2023. In earlier weeks, the monetary authority had injected liquidity into the financial system to rein in gains in the Hong Kong dollar as the US currency declined.