The Hong Kong dollar rose against a broadly weaker US currency on Thursday, while short-dated interbank rates firmed on IPO-related fund demand.
The domestic currency was trading at 7.7844/45 to the US$, having touched a high of 7.7836 in the early morning session, stronger than Wednesday's close of 7.7866/67. Dealers said the Hong Kong currency was tracking a rise in Asian currencies across the board as the US dollar eased.
The greenback took a beating the previous day as investors adjusted positions ahead of the US Thanksgiving holiday. Data on Wednesday showing a softer-than-expected reading of US consumer sentiment in November added to the dollar's weakness.
The US dollar slipped towards a two-month low against the yen and was mired near a 5-1/2-month low against the euro in subdued trading due to holidays in both the US and Japan. The HK dollar is pegged at 7.80 to the USD but can trade between 7.75 and 7.85.
Hong Kong's benchmark Hang Seng index rose 0.08 percent on Thursday after hitting a record high, and the China Enterprises index of H shares gained 0.15 percent.