The Hong Kong dollar edged higher on Thursday as a string of initial public offerings in the territory attracted a fresh inflow of funds, and as dollar sentiment remained weak. The local currency rose to a near one-week high of 7.7717 in early morning trade before paring some gains to stand at 7.7726/27 per US dollar versus 7.7770/72 in late Asian trade on Wednesday. Meanwhile, the discount on one-year forwards widened to 1,370/1,350 pips from Wednesday's close of 1,320/1,300 pips.
"Recent share offerings in the stock market have drawn a lot of investor interest and I expect further funds to come in for two big IPOs next week," said a dealer at a local bank.
A spate of companies are hoping to raise nearly US $5 billion in new equity in Hong Kong by the end of this year.
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