The Hong Kong dollar was under pressure on Tuesday on fears of further fund flows out of the territory, forcing the defacto central bank to step in three times to maintain the pegged exchange rate of 7.80 to the US dollar.
The HKMA reported it bought HK $4.602 billion from banks on Tuesday afternoon in three moves in a bid to keep the currency steady against the US dollar.
The authority has intervened eight times in less than two weeks. It has bought a total of HK $5.928 billion worth of Hong Kong dollars since April 30, to support the local currency.
The HKMA is committed under the territory's currency regime to buy Hong Kong dollars to support the currency if it weakens below 7.8 to the US dollar.
The local currency has suffered selling pressure recently as the Hong Kong stock market has dropped on rate rise fears and tightening measures in China, and because the US dollar has strengthened, making US dollar assets potentially more attractive.
"Funds have been flowing out of the stock market recently," a dealer at a local bank said. "Investors have been selling China shares in the past few days on worries that Beijing may introduce further measures to cool its overheating economy."
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