HKMA sold HK$7.4 billion in 3 interventions on Thursday

PUBLISHED : Friday, 02 November, 2012, 8:12am
UPDATED : Friday, 02 November, 2012, 8:12am

The Hong Kong Monetary Authority (HKMA) stepped into the currency market during New York hours on Thursday, its third intervention for the day, as the local currency repeatedly hit the strong end of its trading range.

It sold HK$2.751 billion ($355 million) in Hong Kong dollars in the latest move, bringing the total injection for the day to HK$7.4 billion, data showed.

The three interventions bring the total number of interventions from the HKMA in the past two weeks to nine.

According to Reuters data, the latest intervention will lift the aggregate balance - the sum of balances on clearing accounts maintained by banks with the HKMA - to HK$175.83 billion on Nov. 5.

The Hong Kong dollar is pegged at 7.8 to the US dollar but can trade between 7.75 and 7.85 to the US dollar. 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.

The currency traded at 7.7501 against the US dollar at 2329 GMT. ($1 = 7.7500 Hong Kong dollars)