The Hong Kong dollar held at the top of its trading band against the US dollar for most of Tuesday, prompting the Hong Kong Monetary Authority (HKMA) to step in and sell HK$2.325 billion ($300 million) for US dollars in the late afternoon to defend the currency peg, as the territory continued to attract fund flows.
The HKMA has been actively intervening in the foreign exchange market in recent weeks as the local currency repeatedly hit its upper trading limit at 7.7500 to the US dollar. The Hong Kong currency is pegged at 7.80 to the US dollar but can trade between 7.75 and 7.85.
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