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HONG KONG - THE Hong Kong Monetary Authority (HKMA) confirmed on Thursday it had sold HK$1.94 billion ($359.2 million) for US dollars late on Wednesday in New York trading to curb the strength of the Hong Kong dollar.
According to data on Reuters page, the latest intervention will lift the aggregate balance - the sum of balances on clearing accounts maintained by banks with the HKMA - to a record HK$175.48 billion by Jan 5.
Hong Kong's currency has been boosted by the liquidation of carry trades, repatriation of capital and inflow of funds into the territory in recent months, dealers said.
The HKMA intervened four times in the foreign exchange market on Wednesday afternoon in Hong Kong trading by selling HK$10.85 billion in total to keep the Hong Kong dollar within its fixed trading band.
The Hong Kong dollar is pegged at 7.8 to the US dollar but can trade between 7.75 and 7.85 to the US dollar.
Under the currency peg, the HKMA is obliged to intervene when the Hong Kong dollar hits 7.75 or 7.85 to keep the band intact.
The currency was quoted at 7.7500/01 against the US dollar at 0245 GMT (10.45am Singapore time). -- THOMSON REUTERS
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