Hong Kong Dollar Bounces Back on Stock Inflows, Hibor Surge

The Hong Kong dollar strengthened to the middle of its fixed trading range against the greenback for the first time since May, buoyed by stock inflows and a surge in local borrowing costs.

The city’s currency appreciated as much as 0.3% to 7.7991 per dollar on Tuesday. Hong Kong’s interest-rate gap with the US has shrunk to the smallest since May, making bearish bets against the local currency via so-called carry trades less appealing.