Hong Kong dollar eases slightly

The Hong Kong dollar was a tad weaker against the US dollar on Wednesday, with sentiment hurt by extended losses in the domestic stock market. The local currency fell to as low as 7.7508 in early trade, its weakest level since September 23, but was still near the upper end of its tight band to the US dollar. The spot rate was quoted at 7.7506/07.
Some dealers expected the USD/HKD spot rate to trade in a narrow range of 7.7500-7.7510 in the near term, saying a spate of ongoing IPOs may draw investment fund flows to limit the Hong Kong dollar's losses. The Hong Kong dollar is pegged at 7.80 to the US dollar but can trade between 7.75 and 7.85.