Hong Kong Dollar May Weaken Further to 7.85 Vs. U.S. Dollar on More Carry Trades -- Market Talk

Dow Jones

May 21

0544 GMT - The Hong Kong dollar may weaken further to 7.85 against the U.S. dollar on more carry trades, Mizuho Securities Asia's Ken Cheung says in an email. Abundant HKD liquidity conditions have played a prominent role in driving HKD rates to extreme lows, resulting in substantial deviation from USD rates and creating an opportunity for "long USD carry trades," says the director of forex strategy. This boosted spot USD/HKD from 7.75 to near 7.83 in only three weeks, Cheung notes. Looking ahead, the "more likely scenario is further carry-trade induced HKD weakening to 7.85 level, potentially triggering the opposite leg of HKMA intervention to drain liquidity to defend the peg," Cheung says. USD/HKD is little changed at 7.8288. (ronnie.harui@wsj.com)

(END) Dow Jones Newswires

May 21, 2025 01:44 ET (05:44 GMT)

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(ronnie.harui@wsj.com) \n</p>\n<pre>\n \n</pre>\n<p>\n  (END) Dow Jones Newswires\n</p>\n<p>\n  May 21, 2025 01:44 ET (05:44 GMT)\n</p>\n<p>\n  Copyright (c) 2025 Dow Jones &amp; Company, Inc.\n</p>\n</font>","source":null,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Hong Kong Dollar May Weaken Further to 7.85 Vs. 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U.S. Dollar on More Carry Trades -- Market Talk\n</h2>\n\n<h4 class=\"meta\">\n\n\n<div class=\"head\" \">\n\n\n<div class=\"h-thumb\" style=\"background-image:url(https://static.tigerbbs.com/150f88aa4d182df19190059f4a365e99);background-size:cover;\"></div>\n\n<div class=\"h-content\">\n<p class=\"h-name\">Dow Jones </p>\n<p class=\"h-time\">2025-05-21 13:44</p>\n</div>\n\n</div>\n\n\n</h4>\n\n</header>\n<article>\n<font class=\"NormalMinus1\" face=\"Arial\">\n<p>\n     0544 GMT - The Hong Kong dollar may weaken further to 7.85 against the U.S. dollar on more carry trades, Mizuho Securities Asia's Ken Cheung says in an email. Abundant HKD liquidity conditions have played a prominent role in driving HKD rates to extreme lows, resulting in substantial deviation from USD rates and creating an opportunity for \"long USD carry trades,\" says the director of forex strategy. This boosted spot USD/HKD from 7.75 to near 7.83 in only three weeks, Cheung notes. Looking ahead, the \"more likely scenario is further carry-trade induced HKD weakening to 7.85 level, potentially triggering the opposite leg of HKMA intervention to drain liquidity to defend the peg,\" Cheung says. USD/HKD is little changed at 7.8288. (ronnie.harui@wsj.com) \n</p>\n<pre>\n \n</pre>\n<p>\n  (END) Dow Jones Newswires\n</p>\n<p>\n  May 21, 2025 01:44 ET (05:44 GMT)\n</p>\n<p>\n  Copyright (c) 2025 Dow Jones &amp; Company, Inc.\n</p>\n</font>\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"BK4023","symbol_name":"应用软件","start_time":0,"source_url":"https://dowjonesnews.com/newdjn/logon.aspx?AL=N","article_id":"2537670116","we_media_id":"106","thumbnails":[],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2537670116","pubTimestamp":1747806240,"columns":[],"sourceInfo":null,"weMediaInfo":{"media_name":"Dow Jones","introduction":"Dow Jones publishes the world’s most trusted business news and financial information in a variety of media.","home_visible":0,"id":"106","head_image":"https://static.tigerbbs.com/150f88aa4d182df19190059f4a365e99"},"summary":"0544 GMT - The Hong Kong dollar may weaken further to 7.85 against the U.S. dollar on more carry trades, Mizuho Securities Asia's Ken Cheung says in an email. Abundant HKD liquidity conditions have played a prominent role in driving HKD rates to extreme lows, resulting in substantial deviation from USD rates and creating an opportunity for \"long USD carry trades,\" says the director of forex strategy. This boosted spot USD/HKD from 7.75 to near 7.83 in only three weeks, Cheung notes. Looking ahead, the \"more likely scenario is further carry-trade induced HKD weakening to 7.85 level, potentially triggering the opposite leg of HKMA intervention to drain liquidity to defend the peg,\" Cheung says. USD/HKD is little changed at 7.8288. ","collect":0,"end_time":0,"defaultTopTitle":"","property":[],"viewcount":null,"language":"en","relate_stocks":{"BK4023":"应用软件","BK4588":"碎股","BK4585":"ETF&股票定投概念","HKD":"尚乘数科","BK4526":"热门中概股"},"translate_title":"由于更多套利交易，港元兑美元可能进一步走弱至7.85——市场讨论","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"HKD":0.9},"content_text":"0544 GMT - The Hong Kong dollar may weaken further to 7.85 against the U.S. dollar on more carry trades, Mizuho Securities Asia's Ken Cheung says in an email. Abundant HKD liquidity conditions have played a prominent role in driving HKD rates to extreme lows, resulting in substantial deviation from USD rates and creating an opportunity for \"long USD carry trades,\" says the director of forex strategy. This boosted spot USD/HKD from 7.75 to near 7.83 in only three weeks, Cheung notes. Looking ahead, the \"more likely scenario is further carry-trade induced HKD weakening to 7.85 level, potentially triggering the opposite leg of HKMA intervention to drain liquidity to defend the peg,\" Cheung says. USD/HKD is little changed at 7.8288. (ronnie.harui@wsj.com) \n\n\n \n\n\n  (END) Dow Jones Newswires\n\n\n  May 21, 2025 01:44 ET (05:44 GMT)\n\n\n  Copyright (c) 2025 Dow Jones & Company, Inc.","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":0,"need_auth":true,"code":"91000000","status":"200"}}}