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HONG KONG, Nov 5 - Hong Kong's central bank injected HK$814 million (S$155.47 million) into the territory's interbank market late on Tuesday in New York trading to stem an appreciating Hong Kong dollar.
"Because of the market demand on Hong Kong dollar and that hit the strong side of convertibility undertaking, on a passive basic, we sold U.S. dollar 105 million equivalent of Hong Kong dollar at the point of 7.75," a spokesman from Hong Kong Monetary Authority's New York office told Reuters on Wednesday.
"All we understand is because of the recent market liquidity situation and some natural demand for Hong Kong dollar that appears normal in our point of view," the spokesman added.
The Hong Kong dollar was quoted at 7.7503/7.7504 as at 0638 Hong Kong time on Wednesday.
The currency is pegged at 7.8 to the U.S. dollar but can trade between 7.75 and 7.85.
The Hong Kong dollar remained close to the top of its trading band on Tuesday as players deleveraged long U.S. dollar positions.
The injection of funds was the the third intervention by the HKMA in less than a week to keep the currency within its trading band. It injected HK$853 million into the territory's banking system during New York trading hours on Monday and HK$2.813 billion late last Friday.
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