HKMA sells HK$11.586b into market to keep Hong Kong dollar within trading band

[HONG KONG] The Hong Kong Monetary Authority (HKMA) stepped into the currency market for a second time on Monday, selling an aggregate HK$11.586 billion (US$1.49 billion) in Hong Kong dollars in New York trading hours as the local currency hit the strong end of its trading range.

The city's de-facto central bank, which has intervened multiple times in the market in the past fortnight, had earlier on Monday sold HK$2.325 billion in Hong Kong dollars.

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$284.561 billion on April 22.

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