Hong Kong Intervenes to Defend Peg for Fourth Day This Month
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Hong Kong intervened to defend its currency peg for the fourth day this month, as the local dollar fell to the weak end of its trading band with the greenback.
The Hong Kong Monetary Authority bought HK$2.79 billion ($355 million) of local dollars during New York trading hours on Monday, adding to an earlier purchase of HK$3.93 billion, according to the de facto central bank’s page on Bloomberg. That took its purchases to HK$25.3 billion in August, the first month it has intervened since May. The aggregate balance of the city’s banking system will drop to HK$84.2 billion on Wednesday.