HKD/USD (HKDUSD=X)

UPDATE 1-Hong Kong interbank rates jump, pull HKD off band extreme

Hong Kong interbank rates jumped on Wednesday as a further decline in banking system cash balances spurred expectations of tightening monetary settings and to an unwinding of short positions in the pegged Hong Kong dollar. The overnight Hong Kong Interbank Offered Rate shot up nearly 92 basis points to 4.4381%, its highest since December 2019. The Hong Kong dollar rose to its strongest since the middle of February at 7.8325 per U.S. dollar.