Hong Kong's currency-peg defense heightened to $4.34b

HKMA sold $2.79b (US$360m) of the city’s currency.

Hong Kong’s de-facto central bank intervened for a second day to defend its currency peg as the local dollar touched the strong end of its trading band.

The Hong Kong Monetary Authority sold $2.79b (US$360m) of the city’s currency in the early hours of 22 April, according to its page on Bloomberg, after sales of $1.55b late 21 April. The aggregate balance, a measure of interbank liquidity, will increase to $63.4b.

Higher local interest rates relative to the greenback have made buying the Hong Kong dollar an appealing trade in recent weeks, despite the dire economic pressures. It’s the first time since October 2015 that the HKMA has defended the peg at the strong end.

Read more on Bloomberg.