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