HONG KONG: Hong Kong dollar traders are pricing in tighter liquidity, with a gauge tracking the demand for cash jumping to the highest level since early 2016.
The currency’s three-month forward points surged to as high as 70 Monday, surpassing the intraday peak of 46.09 seen in mid-August. It shows the supply of cash in the foreign-exchange market is expected to tighten, which tends to support the local dollar by squeezing shorts.
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