Published 23 days ago • loading... • Updated 19 days ago

Hong Kong authority intervenes in market to check local currency's rise

On May 2, 2025, the HKMA purchased approximately US$6 billion in US dollars to prevent the Hong Kong dollar from strengthening beyond its allowed trading range in the city’s foreign exchange market.
The intervention, the first since 2020 and about five years since the last US dollar purchase, responded to the local currency strengthening above its 7.75-7.85 peg range amid capital inflows from equity investments.
The HKMA sold HK$46.54 billion around the 7.75 exchange rate to push back the local dollar reaching the strong end of its convertibility band.
An HKMA spokesperson said the Hong Kong dollar's strength is mainly due to increased demand linked to equity investment activities, and the central bank pledged to monitor markets carefully.
This action suggests that the HKMA will continue interventions if needed, especially if US interest rate cuts prompt further capital inflows, to maintain orderly currency and financial markets.

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