0550 GMT - Upcoming seasonal demand for Hong Kong dollars is likely to support short-term HKD rates in June-July, four economists of DBS Group Research say in a research report. This demand is expected to come from half-year-end settlements and dividend payouts during that period, the economists say. Even if HKD demand proves temporary, HKD rates should stabilize or even rebound under Hong Kong's Linked Exchange Rate System, they say. "The upshot is that HKD rates should rebound in the near term in both scenarios," the economists say. DBS expects three-month Hong Kong Interbank Offered Rate to settle at 2.30% by end-2025. (ronnie.harui@wsj.com)

(END) Dow Jones Newswires

May 28, 2025 01:50 ET (05:50 GMT)

Copyright (c) 2025 Dow Jones & Company, Inc.