HK peg rumour sparks Asian FX debate


HONG KONG -- Rumours circulating the Asian FX markets about Hong Kong potentially dropping its US dollar peg fostered debate on the future of Asian FX last week.

The rumour surfaced after publication on Friday (September 20) of news that the Hong Kong legislature had ordered a study into the peg. Hong Kong’s dollar has been pegged to the US unit at a rate of 7.8 and remains one of the only major economies to have a fixed currency. Although the Hong Kong Monetary Authority, the principality’s