The Hong Kong dollar crept higher on Wednesday, bolstered by a rally in the local stock market and a broad-based decline of the US dollar after minutes from the Federal Reserve's March meeting hinted interest rate increases may be near an end.
The local currency strengthened to 7.7545 to the US dollar, its highest since January 24, before settling at 7.7546/48. The previous day's closing level was 7.7560/63.
One dealer at a local bank said the Hong Kong dollar could head towards 7.7530 after breaking key resistance at 7.7550.
"Positive sentiment in the stock markets should provide further support to the local currency," the dealer said, adding that there was an expectation of fund flows from China after the Beijing's recent relaxation of investment rules.
Hong Kong's currency is allowed to trade between 7.75 and 7.85 per US dollar.
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