Gold and Silver Prices Rebound After Volatile Week Triggered by Fed Nomination 
Japan Economy Poised for Q4 2025 Growth as Investment and Consumption Hold Firm 
Trump’s Inflation Claims Clash With Voters’ Cost-of-Living Reality 
RBI Holds Repo Rate at 5.25% as India’s Growth Outlook Strengthens After U.S. Trade Deal 
China Extends Gold Buying Streak as Reserves Surge Despite Volatile Prices 
Singapore Budget 2026 Set for Fiscal Prudence as Growth Remains Resilient 
South Korea’s Weak Won Struggles as Retail Investors Pour Money Into U.S. Stocks 
Why Trump’s new pick for Fed chair hit gold and silver markets – for good reasons 
Fed Governor Lisa Cook Warns Inflation Risks Remain as Rates Stay Steady 
Gold Prices Slide Below $5,000 as Strong Dollar and Central Bank Outlook Weigh on Metals 
Dow Hits 50,000 as U.S. Stocks Stage Strong Rebound Amid AI Volatility 
Trump Endorses Japan’s Sanae Takaichi Ahead of Crucial Election Amid Market and China Tensions 
U.S.-India Trade Framework Signals Major Shift in Tariffs, Energy, and Supply Chains 
MAS Holds Monetary Policy Steady as Strong Growth Raises Inflation Risks 
Hong Kong’s de facto central bank, the Hong Kong Monetary Authority (HKMA), intervened in currency markets on Thursday by purchasing US$1.2 billion worth of Hong Kong dollars after the local currency hit the weak end of its trading band at 7.85 per U.S. dollar. The move marked the first time in two years that the Hong Kong dollar triggered the weak-side Convertibility Undertaking (CU), which obliges the HKMA to buy the local currency to maintain its peg to the U.S. dollar.
HKMA Chief Executive Eddie Yue stated that future interventions may occur depending on capital flows and supply-demand conditions in the Hong Kong dollar market. As a result of Thursday's intervention, the aggregate balance—a key measure of banking system liquidity—will shrink by HK$9.42 billion on Friday.
The narrowing liquidity is expected to push up interbank lending rates, a trend already observed on Thursday. Analysts warn that continued weakness in the Hong Kong dollar could lead to further HKMA action, tightening liquidity and encouraging traders to maintain long USD/HKD carry trades.
The Hong Kong dollar has seen volatile movements in recent months amid heavy inflows from foreign and mainland Chinese investors participating in large IPOs and bargain-hunting in local stocks. Earlier, such inflows strengthened the currency, forcing HKMA to sell Hong Kong dollars to defend the peg, inadvertently boosting market liquidity and driving interbank rates lower.
This low-rate environment fueled speculative borrowing and leveraged plays across markets. However, with the recent shift in capital flows, liquidity tightening is expected, and the HKMA has signaled its readiness to act to ensure stability.
HKMA warned that uncertainties around interbank rates and currency trends remain elevated due to ongoing carry trade dynamics.
