The Hong Kong dollar moved in a narrow range on Wednesday amid corporate demand for the US currency, a dealer said. He expected the spot exchange rate to stay in a range of 7.7520 to 7.7550 against the US dollar this week. The local currency is pegged at 7.8 to the US dollar but can trade between 7.75 and 7.85 to the US dollar. Local interbank rates were mixed.
Short-dated rates held steady with the one-month Hibor fixed at 0.19929 percent, little changed from 0.20071 percent on Tuesday. The three-month Hibor firmed slightly to 0.89643 percent from Tuesday's at 0.89286 percent. However, the six-month to one-year Hibors were down 10 basis points from the previous day. Dealers said trading in the longer-dated interbank rates were thin. Hong Kong dollar forwards remained stuck in a narrow range in quiet trades with little direction, a dealer said.