The local money market saw a substantial decline in short-term interest rates amid a rumoured injection of liquidity into the system by the Hong Kong Monetary Authority, while longer-term rates rose steadily.
Traders said the movements suggested the SAR's banking sector was preparing for a long-lasting battle to defend the local currency against overseas speculators.
The one-month rate eased 1 per cent to 10.25 per cent, the lowest level since January 7 when a new round of speculative pressure on Asian currencies started to develop.
The benchmark three-month rate declined 0.75 per cent to 11.5 per cent.
'Short Day' rates - rates for lending maturity of less than one month - slid even further, with the one-week rate dropping 2.25 per cent to 7 per cent and the 'tom-next' rate plunging 1 per cent to 5 per cent.
'Tom-next' funds are overnight funds to be drawn today and repaid tomorrow but have their rates set yesterday. The overnight rate stood unchanged at 5 per cent.