Hong Kong exchange rate is weak

On the eve of the U.S. Federal Reserve’s interest rate negotiations, Hong Kong exchanges continued to be weak. The Hong Kong dollar had the minimum of 7.8447 against the U.S. dollar yesterday, and hit a fresh low since the introduction of the two-way exchange guarantee in 2005. In addition, the Hong Kong dollar interbank interest rate (HIBOR) has continued to rise recently. The one-month advancement related to building prices rose for seven consecutive days yesterday to 0.79718%. Zhang Jiansheng, managing director and head of corporate and institutional banking at DBS Hong Kong, anticipates that Hong Kong may raise interest rates by the middle of this year.

Yan Jianwen, deputy director of the financial business department of the China Everbright Bank’s Hong Kong Branch Financial Markets Department, pointed out that the United States this week’s interest rates, raising interest rates is no suspense, the market attention after the meeting’s statement will imply that this year’s interest rate increase more than expected, affecting the market atmosphere, the Hong Kong exchange Further weakened yesterday, although he believes that the United States will not raise interest rates four times this year, chances are not, it is estimated that the second quarter of Hong Kong exchange will touch 7.85.

1 month interbank rate rises for 7 days

Hong Kong Exchanges had a minimum of 7.8447 yesterday and it has closed at 7.8429 as of 1 am today. Lin Junqi, head of the research department of the treasury unit of Shanghai Commercial Bank, said that when Hong Kong Exchange hit 7.85, depending on the U.S. interest rate statement, if the statement is expected to accelerate the rate hike, the exchange may have the opportunity to reach 7.85 in the short term.

In addition, the Hong Kong dollar interbank interest rate continued to rise recently. Yan Jianwen said that mainly due to tight end-of-season funds, one-month interest rate cuts have the opportunity to rise to 0.8% in the short term. As the US interest rate rises, the Hong Kong-US interest rate spread has not narrowed. Hong Kong exchanges are still weak. The chairman of Standard Chartered (02888), Mr. Wintoth, believes that the Hong Kong-US interest rate differential will have the opportunity to return to normal in the coming months.

DBS Zhang Jiansheng said that Hong Kong dollar interest rates have risen in the past one or two months. It is expected that the interest rate spread will not last long. Hong Kong’s rate hike has always lagged behind the United States by 6 to 9 months. It is expected that Hong Kong will start raising interest rates in the middle of this year.