TOKYO, Sept. 21, 2018 /PRNewswire/ - In Hong Kong its currency the Hong Kong Dollar (HKD) has just had its most significant surge in the last fifteen years according to top research analysts at Asahi Marusan Management.
The significant gain hit over 0.60 percent to the US Dollar as the reason for this gain has come down to rising interest rates in Hong Kong.
"The recent surge gives the impression that interest rates will continue to appreciate over the coming years" reported Scott Elliot, Head of Corporate Trading at Asahi Marusan Management.
The biggest banks in Hong Kong have been slowly raising their HKD dollar depost rates in the last twelve months by around 10 basis points on average each time.
Lenders in Hong Kong have not had the best rate which directly effects the costs of mortgages but since 2006 the change of a rate hike is increasing as soon as next week with the Federal Reserve hinting the possibility.
"The long term growth of the Hong Kong Dollar will not sustain, it has too much exposure to the slowing Chinese economy" said Timothy Grant, Senior Vice President at Asahi Marusan Management.
The next few weeks will see both China and Hong Kong as they encounter holiday periods, the Hong Kong Dollar will receive more exposure as a new government incentive will be launched making it a much more convenient and easier way to transfer capital.
About Asahi Marusan Management
Asahi Marusan Management is a private wealth management company that provides access to the global financial markets for both corporate and private clients. For additional information visit www.ammsecurities.com.
SOURCE Asahi Marusan Management