HONG KONG - HONG KONG'S central bank, the Hong Kong Monetary Authority, confirmed on Saturday it had injected HK$3.875 billion (S$740.7 million) into the city's banking system late on Friday in New York trading to stem an appreciating Hong Kong dollar.

It was the second injection on Friday after the authority injected HK$3.1 billion into its currency market in the afternoon as the Hong Kong dollar hit the top end of its trading range.

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.

It was quoted at 7.7501/02 against the US dollar in late Asia trading on Friday.

Hong Kong's currency has been boosted by the unwinding of carry trades and fund inflows into the territory this week, dealers said. -- THOMSON REUTERS