Dollar Depeg Du Jour: 32-Year Old Hong Kong FX Regime In The Crosshairs

Jon Alternative Media, Blogosphere, Economy

On Monday, we brought you two charts which vividly demonstrated market expectations for the abandonment of more currency pegs in the wake of Kazakhstan’s decision to float the tenge and China’s “unexpected” move to devalue the yuan.
As you can see from the following, the market seems to be convinced that Saudi Arabia and UAE, under pressure from falling crude revenue, will ultimately be either unwilling or unable to maintain their dollar pegs (incidentally, the Saudis did succeed in jawboning USDSAR forwards down 125bps on Tuesday):

This post was published at Zero Hedge on 08/25/2015.