The Hong Kong dollar held steady against the greenback on Tuesday, and discounts on forward rates were trapped in narrow ranges ahead of the Federal Reserve's rate setting meeting. After shuffling between 7.7721 and 7.7730 per US dollar throughout the day, the local currency traded at 7.7727/28, barely changed from 7.7727/30 in late Asian trade on Monday.
The discount on one-year dollar forwards narrowed to 230/210 pips from Monday's close of 250/230 pips as players continued to scale back expectations for another near-term Chinese yuan revaluation.
On Monday Reuters reported a senior Chinese government economist as saying China would not adjust the yuan's value in the next three to six months after letting it appreciate 2.1 percent on July 21.
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