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Ackman predicts Hong Kong dollar’s US dollar peg will break

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Bill Ackman, the boss of US hedge fund Pershing Square Capital Management, believes that it is ‘only a matter of time’ before the Hong kong dollar’s peg to the US dollar breaks, according to a report by Fortune.

The semi-autonomous territory’s currency has been pegged to the Greenback for almost 40 years, trading within a narrow band of 7.75 and 7.85 Hong Kong dollars to the US dollar. But the fact that the Hong one government has been forced to intervene in the currency market 40 times so far this year to support the value of its currency has led Ackman and others to the concluding “no longer makes sense”.

And Ackman seemingly has the courage of his convictions after revealing that his fund has take a “large notional short position against the Hong Kong dollar.”

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