HKMA chief says carry trade to push HK dollar toward weak side of trading band

By Reuters News

HONG KONG, Sept 17 (Reuters) - Hong Kong Monetary Authority (HKMA) chief executive Eddie Yue said on Thursday a widening interest rate differential between Hong Kong and US could trigger carry trade, pushing the Hong Kong dollar exchange rate toward the weak side of a band in which it is allowed to move.

HKMA early on Thursday raised its base interest rate charged via the overnight discount window by 25 basis points to 4.25%, tracking the US Fed's move as the city's currency is pegged to the greenback in a tight range of 7.75-7.85 per dollar.

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