HK Dollar Needs More Tailwinds to Strengthen to 7.7500 Vs. US Dollar in 2Q -- Market Talk

Dow Jones
04-15

0512 GMT - The Hong Kong dollar needs more tailwinds to strengthen to 7.7500 against its U.S. counterpart in 2Q, Mizuho Securities Asia's Ken Cheung says in an email. Recently, the HKD has strengthened to a four-year high of 7.7531 against the USD, the director of FX Strategy notes. "As an international finance center, HK-based investors or funds could be facing pressure to offload their USD bonds and equities amid market turmoil and repatriate capital back to home currencies, leading to HKD appreciation," Cheung says. More HKD tailwinds, such as a turnaround in the Fed's policy stance to prioritize growth over tariffs-induced inflation risks, could lead to a further HKD rally, Cheung adds. USD/HKD is steady at 7.7591. (ronnie.harui@wsj.com)

 

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April 15, 2025 01:12 ET (05:12 GMT)

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