Hong Kong Dollar hits two-year high

Tight liquidity conditions have powered the Hong Kong Dollar (HKD) to its strongest level in two years against the US Dollar. 

The currency rose to 7.78238 versus the greenback earlier today. That was the highest level since May 2017. As of writing, the HKD is trading at 7.7845, representing a 0.17% gain on the day. 

A report by Bloomberg says higher borrowing costs have dented HKD’s appeal as the funding currency. 

The one-month Hong Kong Interbank Offered Rate (HIBOR) rose to higher level in more than a decade earlier this week.