Monday, 17 September 2012

USD/HKD Falls; 7.7510 Solid Support Tipped


The USD/HKD is at 7.7520, down from 7.7530 late Friday in Asia. The pair fell to its 22-month low of 7.7510 late Friday in New York, driven by fund inflows following the Fed's QE3 announcement, says a senior trader at a local bank. "Tight liquidity in the Hong Kong dollar, and higher interest rates here, are also luring investors into parking funds in the city's currency." He tips 7.7510 to remain a strong support for the pair, as bidding interests are usually triggered when the pair trades near the trading band. Under the peg system, the USD/HKD is allowed to trade between 7.7500-7.8500.

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