Hong Kong dollar stirs but unlikely to test upside cap

The Hong Kong dollar hit its highest level in nearly two years this week on strong inflows of foreign money but an absence of speculators means the currency is unlikely to test its upper limit in the near term, analysts say.
Funds are pouring into the territory ahead of a spate of initial public offerings and for settlement of a share placement by Chinese oil giant PetroChina Co Ltd, driving the Hong Kong currency up to 7.7593 to the US dollar on Wednesday and again on Thursday, its highest level since November 2003.
The Hong Kong dollar is pegged at 7.75 to 7.85 to the US dollar. If it reached 7.75, the central bank would have to buy US dollars for Hong Kong dollars to maintain the peg.