Hong Kong interbank rates were mostly lower on Wednesday as market liquidity eased after the closing of a massive initial public offering in the territory. One trader from a local bank said interbank rates also declined amid a sell-off in the forwards market.
Bids on the one-week interbank rate were quoted at 4 percent, down from 4.35/4.45 percent late on Tuesday. The one-month rate fell to 4.11/4.16 percent from 4.28/4.33 percent and was down from last Thursday's high of 4.42/4.47 percent.
In the spot market, the Hong Kong dollar exchange rate recovered slightly late on Wednesday after hitting a near one-month low earlier in the day on the back of the global US dollar strength.
The US dollar extended this week's gains on Wednesday, hitting a two-year high versus the yen and a three-month peak against the euro after another Federal Reserve official signalled interest rates would rise further.
It was trading at 7.7597/98 to the US dollar compared with 7.7594/96 in late Asian trade on Tuesday.