HKD

[winston]

HK Dollar Down Late On Weak Stocks, European Banks Squaring Positions

HONG KONG (Dow Jones)--The Hong Kong dollar slid against the U.S. dollar Wednesday as local share prices weakened, and with European banks possibly squaring positions to repatriate funds.

In late Asian trade, the U.S. dollar was at HK$7.7953, up from HK$7.7928 late Tuesday.

Source: Dow Jones

[winston]

DJ MARKET TALK: USD/HKD Higher; Resistance Tipped At 7.7820

1455 [Dow Jones] The USD/HKD is higher; a Chinese bank was spotted buying about US$50 million at 7.7780, prompting other local banks to join the buying bandwagon, says a senior trader at a local bank.

"Still, I don't see many sizable trading positions today as most investors stay on the sidelines ahead of the EU summit.

The local currency should remain well supported thanks to strong corporate demand," the trader says.

He tips the pair to find resistance at 7.7820 and support at 7.7780. The pair is at 7.7795 vs 7.7786 this morning and 7.7790 late Thursday in Asia.

Source: Dow Jones Newswire

[winston]

HK Dollar Extends Decline As Equities' Slide Triggers Mild Outflows

HONG KONG (Dow Jones)--The Hong Kong dollar fell again Wednesday as continued weakness in local equities triggered mild capital outflows.

In late Asian trade, the U.S. dollar was at HK$7.7924, up from HK$7.7901 late Tuesday. The U.S. unit was fixed at HK$7.7925 earlier Wednesday.

Source: Wall Street Journal

[winston]

DJ HK Dollar Up Late On Strengthened Stocks, Risk Appetite

HONG KONG (Dow Jones)--The Hong Kong dollar rose against the U.S. dollar Friday amid improved risk appetite and strong local stocks.

In late Asian trade, the U.S. dollar was at HK$7.7617, down from HK$7.7641 late Thursday. The U.S. unit was fixed at HK$7.7617 earlier Friday.

At 0705 GMT, the benchmark Hang Seng Index was up 0.4% at 20,014.26, tracking gains in regional bourses following Wall Street's jump overnight.

Traders expect the local currency to consolidate around the current level next week, as banks shed positions ahead of the Lunar New Year holiday period. They tipped the U.S. dollar to trade in a HK$7.7580-HK$7.7640 range.

Hong Kong markets will be closed for the Lunar New Year from Monday through Wednesday.

"The Hong Kong dollar won't rise a lot unless the euro leaps to above $1.3000 during the holiday," which could trigger heavy inflows of the local currency as well as the offshore yuan, said a senior trader at a local bank.

The one-year U.S. dollar/Hong Kong dollar forward contract was quoted at a discount of 68 points to the spot rate, compared with a 48-point discount late Thursday.


Source: Dow Jones Newswires

[winston]

DJ MARKET TALK: USD/HKD To consolidate With Upside Bias

0855 [Dow Jones] USD/HKD - consolidation, with upside bias.

The greenback is gaining ground against most Asian FX as a broad-based risk aversion is starting to set in, with equities now joining the fray.

USD/HKD is still within the Bollinger uptrend channel but the pair is lacking momentum and is likely to only inch higher within the 7.7618-7.7660 channel.

Dow Jones technical analysis shows initial resistance is at 7.7660 (daily Bollinger band resistance), then at 7.7693 (daily Ichimoku Cloud resistance), before 7.7700 (psychological resistance).

Support is at 7.7618 (daily Bollinger Band support), followed by 7.7600 (psychological support), before 7.7580 (daily Ichimoku Cloud support).


Source: Dow Jones Newswire

[winston]

Former HKMA Chief Calls for Review of Hong Kong Dollar Peg By Fion Li and Simon Lee

Joseph Yam, the former Hong Kong monetary chief who helped introduce a dollar peg in 1983 and defended it against speculators during the Asian financial crisis, said the city should review its currency policy.

“There is a need to address the question as to whether the monetary system of Hong Kong, as currently structured, can continue to serve the public interest of Hong Kong,” Yam wrote in an academic paper titled ‘The Future of the Monetary System of Hong Kong.’

He outlined alternatives including a link to the yuan and said his decision to address the topic at this time “should not necessarily imply the need for change.”

http://www.bloomberg.com/news/2012-06-1 ... eg-1-.html

[winston]

"Hot Money" flowing into Asia ...

Monetary Authority intervenes to hold down value of the Hong Kong dollar

The Hong Kong Monetary Authority intervened in the currency markets for the first time in nearly three years yesterday to hold down the value of the Hong Kong dollar.


Source: SCMP

[winston]

Hong Kong Buys $603 Million In First Peg Intervention Since 2009

Oct. 20 (Bloomberg) -- The Hong Kong Monetary Authority added funds to the banking system for the first time since December 2009 to prevent the city’s currency from strengthening beyond HK$7.75 to the U.S. dollar.

The de facto central bank bought $603 million today at HK$7.75 to the dollar, according to an e-mailed statement from the authority.

Spokeswoman Rhonda Lam confirmed the statement in a phone interview, saying the HKMA intervened during New York trading hours.

“The recent increase in demand for the local currency is related to a less strained European market, weakness in the U.S. dollar and declining U.S. interest rates, which have prompted capital inflows into currency and equity markets in the region,” the HKMA said in today’s statement. “Upward pressures have similarly been observed in other Asian currencies,” it said.

“The HKMA will remain closely vigilant of the market developments,” the authority said in today’s statement. Today’s move means the banking system’s aggregate balance will expand to HK$153.3 billion ($19.8 billion) on Oct. 24, it said.

The Hong Kong dollar is allowed to trade in a range of HK$7.75 and HK$7.85 per U.S. dollar. When it reaches the so- called strong end of the permitted trading range, the HKMA offers to buy U.S. dollars to prevent further appreciation.

The linked exchange rate was adopted in 1983 when negotiations between China and the U.K. over the city’s shift to Chinese control spurred capital outflows. In 2005, policy makers committed to limiting the currency’s decline to HK$7.85 per dollar and capping gains at HK$7.75.

Joseph Yam, the former Hong Kong monetary chief who helped introduce the peg and defended it against speculators during the Asian financial crisis, said in June the city should review its currency policy. Hong Kong’s officials have reiterated many times there are no plans to adjust the peg.

http://www.businessinsider.com/hong-kon ... 09-2012-10

[profittaker]

What is replacing the yen as a "safe-haven" currency?

Last week the yen did not act as a safe-haven currency. Typically in a "risk-on" market the yen rallies, with investors moving funds out of riskier assets. That hasn't happened recently.

Given these trends are making the yen potentially an unpleasant place to be, where is the capital flowing these days? It looks like the new destination is Hong Kong.

Source: http://feedproxy.google.com/~r/SoberLook/~3/p-7zpXx1IrE/what-is-displacing-yen-as-safe-haven.html

[winston]

vested

HKD continues higher, pushing convertibility undertaking level

HKD continued higher, pushing the convertibility undertaking level at 7.75.

The overnight, 1-week, 1-month and 3-month HIBOR are last at 0.12214% (fallen from 0.12929%) , 0.14571% (fallen from 0.15%) , 0.29786% (fallen from 0.3%) and 0.39929% (fallen from 0.4%), respectively.


Source: AAStocks Financial News