Following devaluation of CNY, investors are looking at who is next. Hong Kong dollar will likely be one of candidates for consideration in line with Saudi Arabia which showed declining foreign reserves for a few months. But, the CDS premium of Hong Kong is low in contrast of Saudi.
Analysts said bets on weakening currencies or giving up the pegging through the option market have increased recently like in RMB market... Is not the end of strengthening USD yet?
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