You are here

HKMA sells HK$6.98 bln to keep Hong Kong dollar in trading band

HongKongHQ131015.jpg
The Hong Kong Monetary Authority (HKMA) stepped into the currency market and sold HK$6.975 billion (US$900 million) in Hong Kong dollars on Tuesday afternoon as the local currency hit the strong end of its trading range.

[HONG KONG] The Hong Kong Monetary Authority (HKMA) stepped into the currency market and sold HK$6.975 billion (US$900 million) in Hong Kong dollars on Tuesday afternoon as the local currency hit the strong end of its trading range.

According to the HKMA, the latest intervention will lift the aggregate balance - the sum of balances on clearing accounts maintained by banks with the authority - to HK$367.941 billion on Oct 15, when the injected funds will be settled.

The Hong Kong dollar is pegged at 7.8 to the US dollar, but can trade between 7.75 and 7.85. Under the currency peg, the HKMA is obliged to intervene when the Hong Kong dollar hits 7.75 or 7.85 to keep the band intact.

REUTERS

sentifi.com

Market voices on:

grab

Receive $80 Grab vouchers valid for use on all Grab services except GrabHitch and GrabShuttle when you subscribe to BT All-Digital at only $0.99*/month.

Find out more at btsub.sg/promo

Powered by GET.comGetCom