The Hong Kong dollar was trapped in a narrow range against the US dollar on Friday, with attention focusing on moves in the stock market and fund flows. The local currency traded between 7.7581 and 7.7595 against the US dollar for most of the day, little changed from late Thursday trade in Asia.
The local currency is pegged at 7.8 to the US dollar but can trade between 7.75 and 7.85. Local interbank rates inched higher, taking their cues from a rise in US dollar rates overnight, dealers said. The one-month Hibor was fixed at 0.19714 percent, up from 0.18643 percent on Thursday. The three-month Hibor rose to 0.84643 percent from 0.83857 percent in the previous day.