The Hong Kong dollar inched higher against the US dollar on Thursday, while interbank rates were steady to a touch firmer ahead of the end of the month. Dealers said the local currency was trapped in a narrow range and sentiment was boosted by a rally in the stock market after China's aggressive interest rate cut.
One dealer expected the spot rate to stay in its recent range of 7.7530 to 7.7570 in the next few days. The Hong Kong currency is pegged at 7.8 to the US dollar but can trade between 7.75 and 7.85. The one-month interbank offered rate was fixed at 1.05071 percent, rising from 0.99357 percent on Wednesday. The three-month Hibor rose 4.7 basis points to 1.99643 percent. The discount on HK dollar forwards widened slightly from the previous session.
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