Hong Kong dollar recovers modestly after recent sell-off

17 Nov, 2005

The Hong Kong dollar regained a little ground late on Wednesday after the currency hit a three-week low the previous session. The local currency was trading at 7.7562/65 per US dollar, after moving in a tiny eight-pip range throughout the day, firmer than 7.7568/72 in late Asian trade on Tuesday.
The Hong Kong dollar had weakened in the past few sessions triggered by some arbitrage trades. It had touched 7.7585 on Tuesday morning, its lowest point since October 20.
However, some traders expected it to remain in range trading as attention fixed on short-dated money rates ahead of the listing of Link REIT.
The volatile overnight interbank rate was quoted at 2.37/2.50 percent late on Wednesday, slightly higher than 2.25 percent on Tuesday.

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