The yen's weakness against the US dollar and weeks of low interbank rates have invited 'minor speculative pressure' on the Hong Kong dollar, traders say.
A number of transactions took place at the psychologically sensitive HK$7.75 level per dollar in London trading on Thursday and local trading yesterday.
No explicit intervention moves have been spotted by local traders but dealers in Singapore said there were strong rumours the Hong Kong Monetary Authority had intervened there at levels just below HK$7.75.
The Hong Kong dollar spot rate closed yesterday at HK$7.748-$7.749.
The declining yen prompted buying of US dollar forwards, pushing up short-term interbank rates by more than one percentage point.
Reflecting the uncertainty over the forthcoming long weekend, the 'tom-next' rate - for overnight funds to be drawn next Tuesday and repaid on Wednesday but having their rates set yesterday - jumped 1.125 per cent to 6 per cent.
