Amid the news of Ant Group’s share sale, experts and trade pundits are expecting that the development would boost the demand for Hong Kong dollar. It would be pinning the currency to its most robust shape, inviting intervention from the Chinese government.
Interestingly, the HK dollar has frequently touched the mark of 7.75 against the US dollar this week. It has resulted in the central bank of the city disposing of the local currency. It was first of a kind in the past three weeks for defending its forex peg against the US dollar.
Notably, the HK dollar has been strolling near the robust peg of its trading band for more than four months now.