HKMA sells further HK$7.75bn as currency hits strong end of trading band
- The de facto central bank sold HK$16.895 billion into the market in its first intervention of the day.
- The aggregate balance - the key gauge of cash in the banking system - will increase to HK$412.467 billion on Oct. 28, HKMA said on Friday.
HONG KONG: The Hong Kong Monetary Authority sold HK$7.75 billion ($1.00 billion) into the market on Friday, its second intervention in Hong Kong trading hours after the local currency hit the strong end of its trading band, according to data released by HKMA.
The de facto central bank sold HK$16.895 billion into the market in its first intervention of the day.
The aggregate balance - the key gauge of cash in the banking system - will increase to HK$412.467 billion on Oct. 28, HKMA said on Friday.
The Hong Kong dollar is pegged in a narrow range of 7.75-7.85 to the US dollar. The HKMA has been conducting sales in recent sessions to weaken the currency to keep it within that trading band.
Capital has rushed into the Asian financial hub in 2020, drawn in by comparatively high interest rates and a series of large initial public offerings, analysts said.
Upcoming IPOs including Ant Group's looming $35 billion joint listing in Hong Kong and Shanghai are expected to keep demand for Hong Kong dollars high.
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