Description
The USD/HKD exchange rate reflects the amount of Hong Kong dollars (HKD) required for one unit of U.S. dollar (USD). This rate is primarily managed under the Linked Exchange Rate System, where the Hong Kong Monetary Authority (HKMA) maintains the HKD within a narrow band of 7.75 to 7.85 HKD per USD to ensure the peg between the two currencies.
Since the HKD is directly pegged to the USD, Hong Kong's trade with the U.S. is minimally affected by exchange rate fluctuations. However, the HKD’s exchange rate against other currencies is entirely dependent on the movement of the USD against those currencies. Consequently, fluctuations in the HKD relative to other currencies have a more pronounced impact on Hong Kong’s trade with countries outside the U.S.