The Hong Kong dollar edged higher against the US dollar on Tuesday but trading was confined to a narrow range. A dealer said the market lacked clear direction and he expected the local currency to hover in a 7.7540-7.7570 range this week, with eyes on economic data from China and the United States.
"The (USD/HKD) spot rate didn't move much today, but I personally think there is a higher risk of a potential capital outflow from the Hong Kong stock market if China undertakes further measures to temper its overheating property sector," another dealer said. The Hong Kong dollar is pegged at 7.80 to the US dollar but can trade between 7.75 and 7.85.
Local interbank rates were steady to a touch softer, but trading remained thin, dealers said. Three-month Hibor was fixed at 0.12000 percent, unchanged from Monday. One-year Hibor fell to 0.56000 percent from the previous session's 0.57000 percent.
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