The Zhitong Finance App learned that the Federal Reserve raised interest rates for the first time in three years last month. Interest spreads between Hong Kong and the US continued to widen, and the Hong Kong dollar exchange rate weakened, once again drawing the market's attention to the trend of the Hong Kong dollar. On October 6, Yu Weiwen, Chief Executive of the Hong Kong Monetary Authority, looked forward to the short-term trend of Hong Kong's foreign exchange, which is affected by several factors, including capital market activity, market appetite for arbitrage trading, local market liquidity conditions, and the outlook for the Federal Reserve's monetary policy. As far as the current situation is concerned, if Hong Kong and the US maintain clear interest spreads, the automatic interest rate adjustment mechanism of the joint exchange system will cause the Hong Kong dollar to weaken, and even trigger the “weak party exchange guarantee” to reduce the bank system's aggregate balance, gradually increase the Hong Kong dollar interest rate, and stabilize the Hong Kong dollar exchange rate between 7.75-7.85 to the US dollar exchange guarantee level. This is where the joint exchange system is designed and works effectively. However, whether and when the “weak party exchange guarantee” will be triggered is affected by the above various factors, making it difficult to accurately predict.

The Zhitong Finance App learned that the Federal Reserve raised interest rates for the first time in three years last month. Interest spreads between Hong Kong and the US continued to widen, and the Hong Kong dollar exchange rate weakened, once again drawing the market's attention to the trend of the Hong Kong dollar. On October 6, Yu Weiwen, Chief Executive of the Hong Kong Monetary Authority, looked forward to the short-term trend of Hong Kong's foreign exchange, which is affected by several factors, including capital market activity, market appetite for arbitrage trading, local market liquidity conditions, and the outlook for the Federal Reserve's monetary policy. As far as the current situation is concerned, if Hong Kong and the US maintain clear interest spreads, the automatic interest rate adjustment mechanism of the joint exchange system will cause the Hong Kong dollar to weaken, and even trigger the “weak party exchange guarantee” to reduce the bank system's aggregate balance, gradually increase the Hong Kong dollar interest rate, and stabilize the Hong Kong dollar exchange rate between 7.75-7.85 to the US dollar exchange guarantee level. This is where the joint exchange system is designed and works effectively. However, whether and when the “weak party exchange guarantee” will be triggered is affected by the above various factors, making it difficult to accurately predict.