A Hong Kong Dollar Drop to Weak End of Band May Be Short-Lived

The Hong Kong dollar is expected to spend a shorter amount of time under pressure than recent bouts of weakness, thanks to forecasts for a softer greenback and seasonal factors.

The city’s currency is slipping ever closer to the weak end of its fixed trading range, as low borrowing costs encourage carry trades where investors borrow it to buy the US dollar and pocket the near-record interest-rate difference.