The Hong Kong dollar hovered near its pegged exchange rate to the US unit on Tuesday ahead of a long holiday weekend, pressured by a broad-based rebound for the US dollar and as expectations for an imminent yuan revaluation eased. The local currency was at 7.7998/99 against the greenback, down from 7.7994/95 in late Asian trade on Monday. Hong Kong financial markets will be closed on Wednesday to Friday for the Lunar New Year holidays and re-open on Monday.
The US dollar hit an 8-week high against the yen and held near a three-month peak versus the euro on Tuesday, supported by US efforts to tighten fiscal policy.