The Hong Kong dollar has fallen to 7.85 per US dollar, its weakest level in 35 years.
Why is the HK$ pegged to the US$?
It touched the lower limit of the range of its peg to the US dollar.
The Hong Kong dollar was pegged at 7.8 per US dollar since October 1983, and in 2005 a trading band of 7.75 to 7.85 was introduced.
The city’s de facto central bank, the Hong Kong Monetary Authority, said that it will intervene to support the currency only if Hong Kong’s banks request it.
But why is the HKD pegged to the USD? Watch our video to find out.