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Politics : Idea Of The Day -- Ignore unavailable to you. Want to Upgrade?

To: robnhood who wrote (12652)	10/23/1997 8:02:00 PM
From: IQBAL LATIF	Respond to of 50167

Absolutely- but I think this test of wills by the speculators will be over tonight. It may start rough but with resolve of HK authorities the attack should stop. As reported by Reuters today at 1,30 PM EST- lets see what happens tonight. "But Tung and his officials, Financial Secretary Donald Tsang and Chief Secretary Anson Chan made clear they were willing to risk more blood on the stock exchange floor in order to defend its currency. Tung said in London that he was confident higher interest rates would shield the Hong Kong dollar. "There is tremendous determination on the part of the Hong Kong government to maintain the exchange rate. We have every confidence this can be done," Tung said, who returns to Hong Kong from his first official trip to Europe Friday. "We have signalled to the market our determination. Interest rates have gone up and as a result there is a short term repercussion on the stock market. This is to be expected." In Hong Kong, Tsang rammed the message home: "The first priority is to defend the exchange rate. This is our top priority." The Hong Kong dollar strengthened initially Thursday, but by 1500 GMT it had pared some gains against the U.S. dollar and was quoted at 7.7260 per U.S. dollar, against earlier London levels at 7.7050 and an Asian low of 7.7495. The Hong Kong government by law must stand ready to redeem Hong Kong dollars for U.S. dollars at a rate of HK$7.80 per US$1. The currency is permitted to trade in a narrow band around that level."