The Hong Kong dollar was stuck in a narrow range against the US dollar on Tuesday as concerns about the volatile stock market were offset by the territory's stable currency, making it an ideal place to park funds, dealers said. The local currency traded between 7.7502 and 7.7506 on the day near the upper end of its tight band to the US dollar. The Hong Kong dollar is pegged at 7.80 to the US dollar but can trade between 7.75 and 7.85.
The Hong Kong Monetary Authority (HKMA) is usually obliged to intervene when the Hong Kong dollar hits 7.75 or 7.85.