Explainer: Can political unrest in Hong Kong break its currency peg?


  • World
  • Thursday, 29 Aug 2019

FILE PHOTO: Hong Kong 100 dollar banknotes are displayed during an exhibition at HSBC headquarters in Hong Kong, China January 20, 2016. REUTERS/Bobby Yip

HONG KONG/SINGAPORE (Reuters) - Three months of anti-government protests have thrown Hong Kong into its deepest crisis in decades, pounding the financial hub's economy and stock market and adding to its Sino-U.S. trade war woes.

The Hong Kong dollar is pegged in a narrow band around HK$7.8 (0.8101 pounds) per U.S. dollar, but has for weeks languished at the weak end as unrest has deepened, shedding 0.8% since early July.

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