The Hong Kong dollar edged lower against the US currency on Monday, and discounts on Hong Kong dollar forwards narrowed on the back of underlying weakness in the local stock market and concerns over slower fund flows into Hong Kong in the near term.
The Hong Kong unit traded at 7.7994/95 to the US dollar weaker than 7.7989/90 in late Asian trade on Friday.
Meanwhile, the discount on one-year forwards tightened to 530/520 pips from Friday's close of 560/540 pips.
"People think that if China takes macro-economic control measures, fund inflows into Hong Kong will slow down," said a dealer from a European bank.
Comments
Comments are closed.