Hong Kong’s de facto central bank stepped into the market twice on Thursday during New York trading hours, buying a total of HK$29.63 billion after the local currency touched the weak end of its trading band.
The Hong Kong dollar is pegged in a narrow range of 7.75-7.85 to the greenback, and the Hong Kong Monetary Authority intervenes at both ends to defend the peg.
The HKMA bought HK$16.88 billion shortly after the close of the US half-day session, and another HK$12.76 billion around 5 a.m. local time Friday, selling US dollars to support the currency.
The aggregate balance, the key gauge of cash in the banking system, will fall to HK$114.54 billion by Monday, July 7.
This marks the fourth intervention in about a week since last Thursday, June 26, during which the HKMA has purchased a total of HK$59.07 billion.
In early May, the Hong Kong dollar triggered the strong-side Convertibility Undertaking multiple times, leading to an inflow of HK$129.4 billion.
STAFF REPORTER
