The Hong Kong dollar ended slightly lower on Friday after moving in a narrow range ahead of a long weekend. The currency was trading at 7.8166/68 against the US dollar at 0943 GMT, softer than 7.8154/56 in late Thursday trade in Asia.
"The market fluctuated within a 10-pip range during the day in two-way interest. If the short-term interbank rates keep a firm tone next week (because of the IPOs), some players may have to sell US dollars for Hong Kong dollars for their funding requirements," one trader said. Another dealer said the local currency's weaker stance on Friday was due in part to a firmer US dollar.
The greenback extended gains against the yen on Friday a day after the Federal Reserve kept interest rates steady at 5.25 percent and reiterated concerns about inflation. Some traders expected the Hong Kong dollar to stay range trading amid interest rate arbitrage and on hopes of fund inflows for upcoming initial public offerings.
Two listing candidates - Fosun International Ltd and Times Ltd - launched their share sales to retail investors on Friday, with trading debuts set for July 16. The Hong Kong dollar is pegged at 7.80 to the US dollar, but can trade between 7.75 and 7.85.
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