The Hong Kong dollar was steady to a tad firmer on Tuesday despite a steep decline in the local stock market. "There has been some US dollar selling for Hong Kong dollars throughout the day, possibly some inflow of funds for upcoming IPOs," said a dealer at a European bank.
Another trader said short-dated liquidity was a little tighter because of several IPOs in the market at the same time that might prompt some players to sell the greenback for Hong Kong dollar funding.
The domestic currency was trading at 7.7753/54 against the US dollar, having touched an intraday high of 7.7752, compared with 7.7756/58 in late Asia trade on Monday.
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