The Hong Kong dollar held steady against the US dollar on Thursday, with sentiment lifted by a rebound in the local stock market. The local currency traded in a tiny range of 7.7505-7.7508 against the US dollar on the day, recovering slightly from a five-week low of 7.7510 in London and New York trading on Wednesday.
The US central bank kept its benchmark short-term interest rate steady near zero at the end of its two-day policy meeting on Wednesday, and said it would likely stay there for an extended period to guide the way to recovery. Some dealers said the USD/HKD spot rate was likely to continue moving in a narrow range in the near term, with attention focusing on fund flows and the performance of the stock market. The Hong Kong dollar is pegged at 7.80 to the US dollar but can trade between 7.75 and 7.85.