Hong Kong steps in to curb strong currency
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One hundred-dollar Hong Kong banknotes pass through a currency counting machine in an arranged photograph in the Bank of East Asia Ltd main branch in Hong Kong, China, on Wednesday, Feb 15, 2012. The Hong Kong Monetary Authority (HKMA) has sold HK$603 million (S$95 million) in the foreign exchange market in an effort to curb the currency's rise, a report said. --PHOTO: BLOOMBERG
HONG KONG (AFP) - The Hong Kong Monetary Authority (HKMA) has sold HK$603 million (S$95 million) in the foreign exchange market in an effort to curb the currency's rise, a report said.
The move on Saturday came as the US dollar hit HK$7.75, the lower limit of the trading band in which the greenback is allowed to trade against the local currency, Dow Jones Newswires reported.
The Hong Kong dollar is typically allowed to trade in a narrow range between HK$7.75 and HK$7.85.
The HKMA said demand for the local unit was robust due to a weakness in the US dollar and stabilisation of European markets, which triggered capital inflows to Asian currencies and stocks.
