The Hong Kong dollar was steady on Wednesday with trading confined to a narrow range in thin trade, but interbank rates were mixed. The local currency shuffled between 7.7534 and 7.7538 per US dollar during the session, little changed from 7.7535/37 in late Asian trade on Friday.
Some dealers said trading was expected to remain sparse in the run-up to the year end. Hong Kong's money market was closed on Monday and Tuesday for Christmas holidays.
Short-term interbank rates were firmer because of the month-end demand for funds, said a dealer from a European bank.
The overnight rate firmed to 3.85/3.90 percent from 3.60/3.80 percent late on Friday.
However, longer-dated interbank rates and interest rate swaps tracked US bond yields lower, with the one-year local interbank rate falling about 7 basis points from Friday's close, the European bank dealer added.
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