HONG KONG -- The Hong Kong dollar's peg to the greenback faces mounting headwinds as investors dump the city's currency in response to a growing interest rate gap with the U.S., forcing its de facto central bank to spend billions to defend its target trading band.
Currencies
Hong Kong dollar peg under pressure as foreign reserves dwindle
Interest rate gap and property downturn weigh on city's currency defenses
The Hong Kong dollar, pegged to the U.S. greenback, has suffered a heavy sell-off due to the Fed's rate increases. © Reuters
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