The Hong Kong dollar nudged lower against the US dollar on Friday but trading was confined to a narrow range in thin volume. The local currency traded between 7.7530 and 7.7552 on the day, ending slightly softer than late Thursday trade in Asia. Dealers said the market was generally rangebound with little trading cues.
One dealer at a local bank expected the USD/HKD spot rate to stick to its recent range of 7.7520 and 7.7570 in the near term. The Hong Kong currency is pegged at 7.8 to the US dollar but can trade between 7.75 and 7.85. The local interbank rates fell across the board. Dealers said the market was flush with liquidity and a major lender had offered to lend short-dated money earlier in the day.