March 21, 2018 / 12:28 AM / a year ago

HK dollar weakens to fresh 33-year low, closer to trading band

HONG KONG, March 21 (Reuters) - The Hong Kong dollar hit a 33-year low early on Wednesday morning, inching closer to the lower end of the monetary authority’s targeted trading band, as the interest rate gap between the U.S. and Hong Kong benchmarks widened further.

The former British colony pegs its currency to the greenback, which means its money market rates mirror those of its U.S. counterparts.

On Wednesday morning, the Hong Kong dollar fell to a new 33-year of 7.8452 per dollar.

The Hong Kong Monetary Authority, the city’s central bank, has pegged the local currency at 7.8 to the U.S. dollar since 1983, but it allows it to trade between 7.75 and 7.85. (Reporting by Donny Kwok; Editing by Sam Holmes)

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