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HKMA intervenes to defend Hong Kong's dollar peg, sells HK$3.1b

[HONG KONG] The Hong Kong Monetary Authority (HKMA) stepped into the currency market and sold HK$3.1 billion (S$542.56 million) in Hong Kong dollars on Thursday 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 HKMA - to HK$242.29 billion on April 13. The Hong Kong dollar was trading at 7.7500 to the US dollar at 1142 GMT after the intervention.

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.