Core Viewpoint - The Hong Kong dollar (HKD) exchange rate and interest rates are influenced by multiple factors, primarily the US dollar trends and monetary policy, as well as capital flows and supply-demand dynamics of the HKD [1] Group 1: Exchange Rate and Interest Rate Dynamics - Under the linked exchange rate system, the HKD's exchange rate and interest rates are highly dependent on the movements of the US dollar and US monetary policy [1] - Recently, due to a contraction in HKD supply and increased demand, both the HKD and Hong Kong Interbank Offered Rate (HIBOR) have risen [1] - In the short term, the HKD exchange rate is expected to remain strong, and HIBOR rates are anticipated to gradually return to normal levels [1]