Anyone seen the rise in USD.HKD from 7.75 to 7.77? Of course in most currencies that would be small but in HKD it is big! Somewhat of a head scratcher...the weakening in HKD seems to have begun as PBOC begun tightening policy, and yet at first glance I would have thought tightening in China would imply more likelihood of RMB appreciation in coming months and possible HKD appreciation... There is a school of thought that says HKD and RMB might be pegged themselves one day (say 1-to-1?) PBOC doesn't want hot money coming in to RMB right now so it is possible that the HKD rally is a curve ball to speculators to throw them off the scent before a surpise RMB appreciation. Or it could just be genuine outflows. I haven't seen any explanations that make sense yet. Even if HK and China in a property bubble would the currency get hit?..even when Japan's bubble burst in 1990 JPY was incredibly strong until 1995 Plaza Accord. Any ideas? Thanks in advance.