The Hong Kong dollar fell back slightly from the top of its trading band against the US dollar on Friday after repeated intervention by the city's central bank in the previous session, and as the US dollar recovered some ground on comments by the US Federal Reserve chief. The local currency briefly touched a session low of 7.7505 versus the US dollar.
The Hong Kong Monetary Authority (HKMA) intervened five times in the currency market on Thursday, selling a total of HK$16.275 billion ($2.1 billion) for US dollars during Asian and New York trading hours to stem a rise in the local currency and keep it within its fixed trading band.
The US dollar got a reprieve after Federal Reserve Chairman Ben Bernanke indicated monetary policy would have to be tightened as a recovery takes hold. The dollar index, a gauge of its performance against major currencies, rose 0.43 percent to 76.293.
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