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HKD/USD @ 7.85?

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  1. #51

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    Click on here: https://www.icicibank.com/nri-bankin...emp/rates.page

    Scroll to FCNR FDs and view some of the tables. Thanks to for this one.


  2. #52

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  3. #53

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    HKMA undertook the selling orders of Hong Kong dollars in an amount of HKD3.925 billion this afternoon (28 March) as HKD re-hit the Weak-side Convertibility Undertaking. At around 5:42 p.m., HKD Index last remained at 7.85. The banking balance of Hong Kong will sink to nearly HKD60.83 billion next Monday (1 April). The undertaking by HKMA this afternoon represented the sixth intervention this year, aggregating over HKD15.5 billion of purchases.
    2019/03/28 17:43
    In am alert from AAStocks

  4. #54

    I understand from various sources that a lot of people have been switching USD loans to HKD loans as (i) HKD interest costs are cheaper than USD interest costs (although not by as much as they were) and (ii) it's considered a hedge if the HKD/USD peg breaks to the downside. This obviously adds to the demand for Hong Kong dollars.

    FWIW, I did this a couple of months ago - switched one loan from USD to HKD to take advantage of lower interest rates + align with the source of income which will be used to service the loan.


  5. #55

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    that technically means shorting the HKD.. since if HKD is to strengthen you would be better off with the original USD loan.

    but that switch should not be the reason for rates to fall to 7.80 because when you are switching into HKD loan, you would be (i) borrowing HKD, (ii) using the borrowed HKD to convert to USD, pushing up USD price, (iii) repaying the USD loan..


  6. #56

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    Interest rates for HKD time deposits are quite high. I have seen 2.4%.


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