Bill Ackman, founder and CEO of hedge fund Pershing Square Capital Management, is betting against the Hong Kong dollar.
The Hong Kong dollar, the currency used by the semi-autonomous Chinese city, trades within a narrow band of 7.75 and 7.85 Hong Kong dollars to the U.S. dollar, in a peg that has survived for almost 40 years. Yet a weakening Hong Kong dollar, which has forced the city’s government to intervene in the currency market 40 times this year to preserve the peg, is leading…