Hong Kong dollar edges higher

The Hong Kong dollar edged higher on Wednesday, buoyed by comments from a European Central Bank official, but further gains were capped as some investors took advantage of comparatively higher US interest rates. "The market was rangebound with some dollar-buying at around HK $7.7940 on arbitrage plays," said a dealer from a Japanese bank. Another trader at a European bank said there were some outright purchases of US dollar.
After shuffling between 7.7940 and 7.7973, the local currency traded at 7.7955/57 per US dollar versus 7.7970 in late Asia trade on Tuesday.