MOSCOW, September 29 (RIA Novosti) - In light of the recent protests in Hong Kong, the dollar has reached its highest over the four years in Asia, while other Asian stock markets continue to perplex Wall Street, BDlive reported Monday.
"We consider the peg [to the dollar] virtually unbreakable but [today's fall in the spot price] is a warning that financial markets and the economy are vulnerable to political uncertainty," Tim Condon, Asia economist at ING, was quoted by BDlive as saying.
According to BDlive, while the dollar index that tracks the currency against a basket of major rivals increased to 85.737, its highest rise since July 2010, Hong Kong shares fell by 2.3 percent since the protests started, a three-month low. It is reported that the Hong Kong dollar, which was usually seen as "calm" and pegged to the dollar, fell by 0.1 percent reaching 7.761.
Similarly, the New Zealand dollar also slipped, reaching $0.7755 – its lowest in a year.
Meanwhile, Japan's Nikkei average rose by 0.7 percent along with the increase of the dollar, while China's stock market performance remains unchanged.
The demonstration began on September 26 in protest of Chinese government plans to control the 2017 election in Hong Kong. According to the claims of Occupy Central, China is going back on its word to maintain the city's autonomy under the "one country, two systems" formula.