Trader: Intervention by the Hong Kong Monetary Authority triggers the closing of some Hong Kong dollar carry trades.

According to two traders familiar with the trading situation, market liquidity has tightened as a result of intervention by the Hong Kong Monetary Authority. Some investors have unwound their short Hong Kong dollar carry trades since Thursday. They state that the unwinding of long positions in USD/HKD led to a drop in the spot price of USD/HKD.