The Hong Kong dollar traded back at the top of its trading band against the US dollar on Wednesday, with sentiment boosted by extended gains in the domestic stock market and signs of an improving global economy. Dealers expected the Hong Kong dollar will continue to hover at the current level, with the prospect of more funds flowing into the territory as recent data provided more evidence that the local economy is recovering.
Hong Kong retail sales in October rose from a year earlier for a second straight month, by 9.8 percent and at a much faster pace, government data showed on Tuesday. The Hong Kong dollar is pegged at 7.80 to the US dollar but can trade between 7.75 and 7.85. The Hong Kong Monetary Authority (HKMA) is usually obliged to intervene when the local currency hits 7.75 or 7.85.
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