Hong Kong interbank rates fell further on Friday as recent stock market losses saw companies and investors leave funds in the money market, and the Hong Kong dollar weakened slightly. The currency allowed to move between 7.75 and 7.85 to the US dollar, was trading at 7.7627/29, softer than Thursday's close of 7.7612/13.
Interbank rates retained a soft tone on Friday in a market flush with liquidity. The overnight rate was quoted at 2.62/2.75 percent, down from 3.30/3.50 percent late Thursday and below 4 percent for a third day. The one-week interbank rate eased to 3.50/3.60 percent from 3.65/3.70 percent late on Thursday. The one-month rate fell to 4.05/4.15 percent, compared with 4.20/4.22 percent the previous day. The one-year rate was quoted at 4.90/4.93 percent versus 4.95/4.98 percent on Thursday.
Dealers said the decline in interbank rates was due to some newly listed mainland companies still parking their funds in Hong Kong, and because some firms had deferred their fund-raising plans.