Annual exchange rate charts of the Hong Kong Dollar indicate fundamental closeness to the USD if compared to the EUR/USD rate. There is an almost fully simultaneous profile along the USD rate visible towards the EURO in opposite to the HKD/USD relation itself having a highly volatile relation – but only within a very small range.
Demonstrating a deliberately limited autonomy to the leading currencies the HKD exchange rate of the Chinese Yuan on the opposite shows a continuous depreciation course.
As one of the most sensitive currencies worldwide in regard to its political as well as its direct trading implications the HKD might give a glimpse on hybrid currency volatility management that is partly free and partly influenced by interventions (by the Hong Kong Monetary Authority). Its smart profile might underline Hong Kong’s further increasing relevance as a financial centre of implied political sensitivity.