Explained: Can political unrest in Hong Kong break its currency peg?

The Hong Kong dollar is pegged in a narrow band around HK$7.8 per US dollar, but has for weeks languished at the weak end as unrest has deepened, shedding 0.8% since early July.

Three months of anti-government protests have thrown Hong Kong into its deepest crisis in decades, pounding the financial hub’s economy and stock market and adding to its Sino-US trade war woes. The Hong Kong dollar is pegged in a narrow band around HK$7.8 per US dollar, but has for weeks languished at the weak end as unrest has deepened, shedding 0.8% since early July.