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The Wall Street Journal: Hong Kong dollar hits lowest level in 13 years

Hong Kong’s forex peg with the U.S. dollar has many problems. It is still town’s least worst option.

The Hong Kong dollar USDHKD, +zero.0102%  on Thursday in brief touched the bottom of its accredited trading band towards the U.S. dollar for the primary time for the reason that peg took its current shape in 2005. That stoked considerations that town’s de facto central financial institution would step in to empty one of the vital money sloshing around in the banking system—money that has fueled good points in the town’s inventory and property markets.

The Hong Kong Monetary Authority stands in a position to step in when the Hong Kong dollar falls to 7.85 to the U.S. dollar—because it did Thursday—or rises to 7.75.

It isn’t the primary time Hong Kong’s 35-year-old dollar peg has come below pressure.

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