The Hong Kong dollar was steady on Thursday, while discounts on forward rates widened following softer short-term interbank rates and tracking movements in yuan non-deliverable forwards, dealers said.
The local currency was trading at 7.7589/91 to the US dollar at 0330 GMT, little changed from the previous day's close of 7.7592/95.
Short-dated interbank rates softened after some banks offered liquidity.
One dealer reported the overnight interbank rate eased to 3.60 percent before trading back to 3.70/3.75 percent. It closed at 3.80/3.90 percent on Wednesday.
The one-week rate softened to 4.05/4.10 percent from Wednesday's close at 4.20/4.25 percent. The two-week rate fell to 4.10/4.15 percent from 4.23/4.28 percent.
Other interbank rates edged lower, taking a lead from a sell off in Hong Kong dollar forwards, said a trader at a local bank.
The discount on three-month Hong Kong dollar forwards widened to 115/110 pips from Wednesday's close of 103/98 pips. The discount on one-year forwards deepened to 440/420 pips, compared with 405/395 pips.
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