Hong Kong Monetary Authority

Further Weakening of Japanese Yen

October 22, 2012

The dollar has climbed 0.6% against the yen but fallen by 0.4% versus the euro and kiwi, 0.3% against sterling, 0.2% relative to the Swiss franc and 0.1% vis-a-vis the loonie.  The Australian dollar and Chinese yuan are unchanged. The Hong Kong Monetary Authority sold local currency against the U.S. dollar, its first intervention since […] More

Hong Kong Continues to Mime Fed Policy

April 26, 2012

The Hong Kong Monetary Authority retained a 0.5% base rate, one day after the FOMC kept a zero to 0.25% federal funds target.  The HKMA typically copies whatever the Fed does regarding the U.S. interest rate target with an announcement a day after the U.S. action.  The base rate enjoys a slight premium relative to […] More

Hong Kong Monetary Authority Follows Fed’s Cue

December 14, 2011

Hong Kong has a currency stability policy rather than an independent domestic interest rate policy.  The enforcement of this goal, which the HKMA explains as below on its web site, is aided by the maintenance of a fixed premium of the Hong Kong base rate relative to the federal funds target.  That spread had been […] More

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