December 23, 2011 (Powerhomebiz.com) The Hong Kong dollar fell in value against the US dollar last week and many believe that the HKD would remain choppy against the US dollar in the next few weeks especially due to the ongoing euro zone crisis. The US dollar has in fact emerged as a safer option for many investors and with uncertainty over the Euro’s future, US dollar has made some significant gains in 2011 especially against most Asian currencies.
According to GuideMeHongKong.com (www.guidemehongkong.com) it was expected that the Hong Kong dollar would lose some value against the US dollar and also trading would remain choppy over the next month or so. The real problem here is that there are no tangible solutions being presented for the ongoing economic crisis in Europe and with a lot of speculation against the Euro’s future, US dollar would remain strong as many investors would prefer the safety of the US dollar over other currencies. Although many Asian currencies have been on a free fall against the US dollar in entire 2011 and the trend is expected to continue in the first quarter of 2012 as well. Overall if you compare with most currencies in Asia, Hong Kong dollar has still done well and held its own against US dollar.
As per GuideMeHongKong.com, although investors need to be a little cautious nowadays, there are no major risks against the Hong Kong dollar. With significant foreign direct investment coming in to Hong Kong and with the impact of the growing presence of Chinese activity in Hong Kong, overall both Hong Kong’s economy and its dollar should remain strong in the coming year. The main thing to be seen here is the impact of a slowdown in China on Hong Kong’s stock and currency market. There is already news of an industrial growth slowdown in China and it remains to be seen what kind of impact this will have on the overall Chinese economy.
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GuideMeHongKong.com is a Hong Kong-focused business information portal targeted towards entrepreneurs who are exploring a move or business in Hong Kong. The site provides detailed information on Hong Kong company registration, taxation, immigration and ongoing compliance matters for startups and small to medium sized companies. Thousands of visitors use our portal every day to obtain comprehensive, accurate and up-to-date information about Hong Kong. For more information please visit http://www.guidemehongkong.com/