The Hong Kong dollar held with a narrow range against the US dollar on Tuesday, with attention focusing on moves in the stock market and fund flows. The local currency was trading at 7.7531/32 against the US dollar, barely changed from late Monday trade in Asia, after shuffling between 7.7529 and 7.7539. One dealer said the USD/HKD spot rate had been trading in a tight range in recent sessions amid a volatile stock market.
He expected the spot rate to stay in a range of 7.7520 and 7.7540 in the near term. The Hong Kong currency is pegged at 7.8 to the US dollar but can trade between 7.75 and 7.85. Local interbank rates were steady to a touch lower amid abundant liquidity in the banking system.
The one-month Hibor was fixed at 0.16857 percent on Tuesday morning, softer than 0.17429 percent on Monday. The three-month Hibor weakened slightly to 0.77000 percent from Monday's at 0.77786 percent. Hong Kong dollar forwards were little changed with thin activity, dealers said.
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