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HKMA sells HK$7.75b to keep Hong Kong dollar within its trading band

[HONG KONG] The Hong Kong Monetary Authority (HKMA) stepped into the currency market again and sold HK$7.75 billion (S$1.34 billion) in Hong Kong dollars on Tuesday as the local currency hit the strong end of its trading range.

The city's de-facto central bank has intervened multiple times in the market in the past fortnight.

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$292.313 billion on April 23.

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