The Hong Kong dollar continued to hover near the top of its trading band against the US dollar on Friday, despite a pullback in the stock market from the previous session's 13-month high. One dealer at a local bank said the USD/HKD spot rate was likely to stay in a narrow range of 7.7500 and 7.7505 in the near term, with attention focusing on the fund flows amid a spate of ongoing IPOs.
Hong Kong's Hang Seng Index was down 0.29 percent on Friday, tracking softer overseas markets. The Hong Kong dollar is pegged at 7.80 to the US dollar but can trade between 7.75 and 7.85.