HONG KONG -- The Hong Kong dollar hit its weakest level against the greenback in a decade on Tuesday, as flush liquidity continued to curb Hong Kong money market rates and spurred carry-trades for the higher-yielding dollar and yuan.
The local currency, pegged at 7.75-7.85 to the dollar, edged beyond 7.82 for the first time since August 2007, when the U.S. subprime mortgage crisis erupted. It breached the mid-point of the trading band in June, after a sustained devaluation since January.
