More HK$ sold to defend $-peg

The Hong Kong Monetary Authority stepped into the currency market for a second time on Thursday by selling HK$2.3 billion ($300 million) in Hong Kong dollars as the local currency repeatedly hit the strong end of its trading range.

Earlier in the day, the HKMA sold HK$2.3 billion in Hong Kong dollars into the market. The latest move brought the total injection for the day to HK$4.6 billion as of 09:50 GMT.

According to Reuters data, the latest intervention will lift the aggregate balance - the sum of balances on clearing accounts maintained by banks with the HKMA - to HK$173.08 billion on Nov 5.

It was the eighth intervention from the HKMA in two weeks.

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. Under the currency peg, the HKMA is obliged to intervene when the Hong Kong dollar hits 7.75 or 7.85 to keep the band intact.

China Daily-Agencies