Billionaire investor Bill Ackman said he's betting the Hong Kong dollar will fall and that its peg to the U.S. dollar can break, the latest big money manager to take a public short bet as U.S. rate hikes turn the blowtorch on Hong Kong's currency system.
"We have a large notional short position against the Hong Kong dollar through the ownership of put options," he said on Twitter. "The peg no longer makes sense for Hong Kong and it is only a matter of time before it breaks."
The Hong Kong dollar has been pegged in a tight band between 7.75 and 7.85 per greenback for nearly four decades and tends to face pressure - and thus far unsuccessful speculative challenges - every time U.S. interest rates go up. The Hong Kong Monetary Authority maintains the peg by moving interest rates in lockstep with the U.S. Federal Reserve and by currency intervention, which drains Hong Kong liquidity and is designed to drive local rates higher still flows stabilise the local dollar.Some economists say the speed and scale of this hiking cycle is the sternest test yet, particularly as Chinese growth falters, which makes for an uncomfortable time to be raising rates.in July he expects the peg to break.
Earlier this month, the aggregate balance - a key gauge of cash in the banking system - fell below HK$100 billion for the first time since 2020 and the one-month Hong Kong Interbank Offer Rate stands atSince May, the Hong Kong dollar has been pinned near the weaker end of its band, though has lifted a bit in recent weeks as markets start to price a peak in U.S. rates. It was last at 7.8142 per dollar.
Österreich Neuesten Nachrichten, Österreich Schlagzeilen
Similar News:Sie können auch ähnliche Nachrichten wie diese lesen, die wir aus anderen Nachrichtenquellen gesammelt haben.
6 former Apple Daily staff members plead guilty to collusion in Hong KongSix former executives at Apple Daily have pleaded guilty to collusion. Apple Daily is a former pro-democracy newspaper in Hong Kong. The staff members were arrested last year.
Weiterlesen »
‘Infernal Affairs’: Compromised and Conflicted Cops in Hong KongA trilogy of police procedurals—the first of which inspired Martin Scorsese’s ‘The Departed’—receives a newly restored 4K release from the Criterion Collection.
Weiterlesen »
Hong Kong believes stablecoin volatility can spillover to traditional financeThe study also the crash of Terra USD (UST), an algorithmic stablecoin issued by Terraform Labs, which had caused mass redemption of Tether (USDT).
Weiterlesen »
Six ex-Hong Kong newspaper staff plead guilty in anti-China protests caseThe former executives, who worked for the newspaper Apple Daily, were arrested last year after Beijing imposed the tough National Security Law to curb anti-national sentiments in China's self-governing territory.
Weiterlesen »
Billionaire Bill Ackman: Crypto Enables Creation of Useful Businesses and 'Is Here to Stay' – Featured Bitcoin NewsAccording to the billionaire’s reckoning, the 'vast majority of crypto coins are used for fraudulent purposes rather than for building legitimate businesses.' billackman pumpanddump
Weiterlesen »
How Richard Branson Became The First Space Billionaire: The Virgin Galactic StoryRichard Branson beat Jeff Bezos to space this weekend in what may signal a new era for space travel, by actually going to space.
Weiterlesen »