Why Fed’s rate pause won’t drag on USD/HKD carry trades – analysts
Factors suggest gap in US/Hong Kong dollar borrowing costs will not narrow any time soon
The gap in borrowing costs between the greenback and the Hong Kong dollar will remain large, despite the US Federal Reserve’s pause on interest rate rises – and that means no let-up in USD/HKD carry trading, say analysts.
The US central bank held steady on monetary policy at its March meeting and signalled there will be no further rate hikes this year, sounding a more dovish tone than the market expected.
But this pullback from tightening is unlikely to cause the interest rate differential
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