While the Hong Kong Monetary Authority started off with two interventions of 100 million dollars, now they've upped it to the 1 billion dollar level. Now we're talking. This is good for those of you who've been in our Hong Kong Dollar trade in the Money Trader service. www.money-trader.com
Oct. 31 (Bloomberg) -- The Hong Kong Monetary Authority sold HK$7.828 billion ($1 billion) to defend its currency's 24- year-old fixed exchange rate, as overseas investors bet the city's assets will benefit from growth in China's economy.
Today's sales were 10 times larger than the two previous interventions this month after Hong Kong's currency climbed to HK$7.75 per dollar, the top of its permitted trading range. Thomas Chan, a spokesman for the HKMA, confirmed the transaction.
``They'll keep on intervening, and the intervention will only get bigger and bigger,'' said Steven Chang, global markets vice president at State Street Bank & Trust Co. in Hong Kong.
Sean Hyman
editor, www.money-trader.com
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