The Hong Kong dollar moved in a narrow range against the US dollar on Monday, while interbank rates were steady to a touch firmer from the previous session. The local currency was quoted at 7.7502, just a whisker below its upper limit at 7.7500 to the US dollar.
Hong Kong stocks opened lower, tracking losses on Wall Street after disappointing US corporate results. But later both indexes rebounded. Dealers expect the Hong Kong dollar to stay near the upper trading band, with investors still eyeing Asian markets in the hope of a quick recovery. Hong Kong has been drawing fund inflows amid signs that China's economy is rebounding, which will help other Asian economies recover.
China will release GDP figures for the third quarter on Thursday. According to a Reuters poll of economists, the GDP is expected to grow 8.9 percent in the July-September quarter from a year earlier, compared with 7.9 percent in the second quarter.
The Hong Kong dollar is pegged at 7.80 to the US dollar but can trade between 7.75 and 7.85. The HKMA is usually obliged to intervene when the local currency hits 7.75 or 7.85. In the interbank market, short-dated rates were a touch firmer in the absence of major lenders, said a dealer at local banks. One-month Hibor was fixed at 0.10857 percent, up from Friday's 0.10714 percent. Hong Kong dollar forwards were little changed in quiet trade.
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