The Hong Kong dollar edged lower against the US dollar on Tuesday, while interbank rates were steady and hovered at a similar level to the previous session. The local currency hit an intraday low of 7.7521, slightly softer than late Monday trade in Asia.
Dealers said the market was generally rangebound with sporadic commercial orders for the US dollar noted in the afternoon. One dealer expected the spot rate to stick to its recent range of 7.7510 and 7.7540 in the near term, with eyes on equity market sentiment as well as the broad US dollar trend. The dollar index, a gauge of the greenback's performance against six other major currencies, was up 0.76 percent on the day at 80.635.
Hong Kong's Hang Seng index closed down 0.76 percent on Tuesday, while the China Enterprises index was off 1.18 percent. The Hong Kong currency is pegged at 7.80 to the US dollar but can trade between 7.75 and 7.85. Local interbank rates were trapped in a narrow range. The overnight rate has remained at near zero given abundant liquidity in the banking system.
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