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Hong Kong interbank rates softened and discounts on dollar forwards widened on Monday after jobs data suggested the Federal Reserve would not be accelerating the pace of interest rate rises in the United States. Data from the US on Friday showing the creation of 262,000 jobs in February was the biggest gain in four months, while inflationary worries were soothed by a static hourly earnings rate.
The local one-month interbank rate was quoted at 1.65-1.70 percent, down from Friday's close of 1.83-1.86 percent, while the one-year rate eased to 2.61-2.66 percent from 2.68-2.72 percent.
The local currency was trading at 7.7996/97 per US dollar, compared with 7.7997/98 in late Asian trade on Friday.

Copyright Reuters, 2005

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