Global Market: Hong Kong dollar hits one-month low as carry trades loom
The Hong Kong dollar fell to 7.8456 per U.S. dollar on Thursday, its lowest in a month, as the interest-rate gap with the U.S. widened. The Hong Kong Monetary Authority noted this could lead to increased carry trades, putting further downward pressure on the currency. The HKMA raised its base interest rate by 25 basis points to 4.25%, following the Federal Reserve's increase.