The Hong Kong dollar was trapped in its recent range against the US dollar on Wednesday, while interbank rates edged higher on year-end position adjusting and following firmer US bond yields.
After shuffling between 7.7523 and 7.7531 per US dollar, the local currency traded at 7.7525/26 little changed from 7.7522/24 in late Asian trade on Tuesday.
Hong Kong interbank rates firmed across the board and trading was dominated by some follow-through position adjustment ahead of the year end, a trader said.
The overnight rate was quoted at 3.90/3.95 percent, up from 3.80/3.85 percent late on Tuesday.
The one-month rate rose to 4.05/4.10 percent by late afternoon versus its opening at 4.02/4.04 percent, the trader added.
Meanwhile, longer-dated interbank rates and interest rate swaps nudged higher on Wednesday, taking their lead from a moderate rise in US bond yields overnight, dealers said.