The Hong Kong dollar weakened towards the lower end of its trading band on Thursday as the widening interest-rate gap between Hong Kong and the United States raised the prospect of increased carry-trade activity, according to Reuters.
The Hong Kong dollar fell to 7.8456 per U.S. dollar in afternoon trading, its weakest level in a month. The currency is pegged to the U.S. dollar within a narrow 7.75-7.85 trading range and has been moving closer to the weak end of the band in recent weeks.
