The Hong Kong dollar was slightly firmer against the US dollar on Friday, while interbank rates retreated from recent highs as demand for IPO-related funds dwindled. "The USD/HKD spot rate moved in a narrow range with some corporate demand for Hong Kong dollars," said a trader from a European bank.
The local currency was trading at 7.7571/73 per US dollar, firmer than 7.7578 in late Asian trade on Thursday. It had risen to 7.7565 in the morning session.
Interbank rates softened across the board.
Dealers said market liquidity was improved after a major British bank lent out money for periods crossing the settlement of China Constuction Bank's IPO.
One dealer also said some banks had offered one- and three-month liquidity after they had secured enough funds for the ongoing IPO.