ArrowArtboardCreated with Sketch.Title ChevronTitle ChevronIcon FacebookIcon LinkedinIcon Mail ContactPath LayerIcon MailPositive ArrowIcon Print
Currencies

Hong Kong's dollar peg in spotlight ahead of expected Fed rate hike

U.S. short seller Kyle Bass betting decades-old arrangement could soon crumble

A widely expected rate hike by the Federal Reserve is stoking more Hong Kong dollar selling and upping speculation that the city's ability to maintain the decades-old peg against the U.S. dollar is being stretched too far. (Photo by Ken Kobayashi)

HONG KONG -- The Hong Kong dollar's peg to the greenback is drawing fresh scrutiny as another expected U.S. interest rate hike ramps up capital flows out of the city.

Authorities in the financial hub have repeatedly stepped into currency markets over the past few months, buying Hong Kong dollars to prop up the sliding currency as investors dump it in favor of the U.S. dollar.

Sponsored Content

About Sponsored Content This content was commissioned by Nikkei's Global Business Bureau.

Nikkei Asian Review, now known as Nikkei Asia, will be the voice of the Asian Century.

Celebrate our next chapter
Free access for everyone - Sep. 30

Find out more