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HKMA sells HK$4.29b into market overnight after currency strengthens

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The Hong Kong Monetary Authority (HKMA) sold HK$4.29 billion (S$769.6 million) into the market in New York trading hours after the local currency hit the strong end of its trading band, according to data released by the HKMA on Thursday.

[HONG KONG] The Hong Kong Monetary Authority (HKMA) sold HK$4.29 billion (S$769.6 million) into the market in New York trading hours after the local currency hit the strong end of its trading band, according to data released by the HKMA on Thursday.

The aggregate balance - the key gauge of cash in the banking system - will increase by a total of HK$15.76 billion.

This includes HK$11.47 billion sold during Hong Kong hours, taking the total aggregate balance to HK$164.89 billion on July 10, a HKMA spokesperson said.

The figure of HK$15.764 billion is the biggest single daily injection since the current cycle started in April.

The Hong Kong dollar is pegged in a narrow range of 7.75-7.85 to the US dollar. The HKMA has been conducting sales in recent sessions to weaken the currency to keep it within that trading band. 

REUTERS

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