Over $12b of local currency sold in new HKMA intervention

Hong Kong’s de facto central bank has again intervened in the currency market on Tuesday, selling about HK$12.79 billion worth of the local currency, as the exchange rate repeatedly tested the upper end of its trading band against the greenback.

This came after the Hong Kong Monetary Authority’s earlier injection of HK$60.5 billion in New York trading hours.

The two interventions brought total liquidity added to HK$73.3 billion for the day.

Earlier, HKMA chief executive Eddie Yue Wai-man said the Hong Kong dollar’s continued strength and the need for further market intervention will hinge on the pace of southbound capital inflows, as well as the impact of upcoming mega initial public offerings.

STAFF REPORTER