The dollar seems to be in the bottom of Hong Kong hot money Withdraw

Once the dollar is strong, it will attract money back to the dollar and drain the global capital. The dollar has continued to strong against major currencies, with data showing that the flow of hot money into Hong Kong has slowed considerably over one months ago. Nomura pointed out that Hong Kong's banking system balance had been reduced by $ more than 70 billion to the current amount of about $186.7 billion, indicating that the funds were being withdrawn from Hong Kong and that the bank had proposed to sell the Hong Kong dollar.　　Some market participants worry that as the dollar has been stronger, hot money can be withdrawn from the Hong Kong market at any time to add pressure to future stocks.　　"Wen Wei Po," quoted market participants point of view, as the stock market afternoon to determine one of the indicators of the US-Exchange index, since the end of the psychological barrier after the 80 mark, has seen a rebound in recent signs, the United States dollar once strong, will attract funds to return to the dollar assets, take away the global capital, the recent major hot money to support the Asia-Pacific region stock market, is bound to be under pressure. The recent soft performance of the Hong Kong dollar also gives a glimpse of the outflow of hot money, or at least the pace of its inflow to Hong Kong. On the one hand, the HKMA is no longer required to sell Hong Kong dollars on the market since last month to meet investors ' demand for the Hong Kong dollar. To the close of the local trading session, the Hong Kong dollar closed at 7.7521 against the US dollar, slightly below the Wednesday end of 7.7517.　　Traders pointed out that some of the recent dollar buy demand, spot exchange rate in the vicinity of 7.7510 to find a good support. The U.S. Exchange index recently hit bottom rebound index since March 9 89.292, has been decline, and on June 2 low see 78.485, 2 months of diarrhea 12.1%; recently saw a slight rebound, last night reported 79.299. The dollar rose against 10 of the 16 most active currencies, up from $1 to HK $7.7517, a slight increase of 0.0025% per cent in the previous trading day, as at 6 o'clock last evening.　　USD 1.4160 against the euro, USD 96.47 yen against the yen, sterling against USD 1.6364, AUD $0.8029 against US dollar, up 0.06% to 0.54% on the previous trading day. Nomura: It is advisable to sell a distant rendezvous about Nomura yesterday, advising investors to make a profit by selling a six-month forward contract with the dollar, as funds are withdrawing from Hong Kong's financial system. The report noted that the Hong Kong banking system balance had fallen from $257 billion last month to $186.7 billion this month as a result of the HKMA's sale of government bonds and the profit-taking of overseas investors.　　Craig Chan, Asia's monetary strategist in Singapore, said that as the HKMA was currently removing liquidity, it was expected that the Hong Kong dollar exchange rate and the forward contract would be increasingly sensitive to the reduction in the balance of the banking system, and suggested a bullish dollar. Merrill Lynch: US dollar weakness ends Merrill Lynch yesterday also said the dollar would "reverse" the weakness. Daniel Tenengauzer, head of foreign exchange strategy at Merrill Lynch, said the dollar had continued to weaken in the past few weeks as the market was too worried about the risk of further increases in inflation, but it now appears that expectations of inflation are overblown.The bank therefore believes that the dollar will not continue to fall comprehensively and that the weakness will end.