Disclaimer: I know less than nothing on F/X
Question 1: Is the risk higher or lower when the person is borrowing in HKD then paying off in AUD AND AND the person's salary / income continues to be in HKD?
So has BDW's risk gone up as now his salary is in AUD?
Question 2: Is the risk of this currency pair HKD / AUD less than another currency pair because the HKD is pegged to the US dollar. e.g. does a peg to USD lessen volatility versus a pair that has no peg like say EURO to something or JPY to something