Hong Kong Dollar’s Swings Fuel Talk on How FX Peg May Shift

A fresh debate about the sustainability of Hong Kong’s decades-long currency peg has analysts ruminating on what might eventually replace it.

It’s an issue that’s gaining traction after intervention by authorities to defend the peg set off a bout of volatility in the local dollar in recent weeks. The currency continues to hover near the weak end of its trading band following a slide in the city’s interest rates to a three-year low.