The USD to HKD pair is a cross currency pair made up of the United States dollar and the Hong Kong dollar. The USD is the number one traded currency around the world, partly due to the US’ position as a global powerhouse when it comes to international trade and partly because of the USD’s status as the planet’s primary reserve currency.
The USD to HKD rate is determined by a linked exchange rate system, which has been in place since 1983 and allows the HKD to range between 7.75 to 7.85 per one USD. That range is set by the Hong Kong Monetary Authority, which can vary either the linked currency or the value band of the HKD in relation to that foreign currency.
The idea behind this system – known as a ‘peg’ – is to “reduce the foreign exchange risk faced by importers, exporters and international investors”.