Hong Kong Ramps Up FX Intervention to Defend Currency Peg

Hong Kong authorities ramped up sales of the local dollar as the greenback’s slide threatened the foreign-exchange peg.

The Hong Kong Monetary Authority sold a record HK$60.5 billion ($7.8 billion) of the city’s currency, according to an alert sent on its Bloomberg page early on Tuesday in Asia, after it tested the upper end of its trading band. It followed up by offloading another HK$12.8b of local dollars later in the day, in the fourth operation since Friday to cap the currency’s gain.