AFX: HK dollar hovers at upper limit,eyes on central bank
HONG KONG, Dec 2 (Reuters) - The following is a snapshot of the Hong Kong foreign exchange and money market on Wednesday.
Latest Previous Day
At 0559 GMT At 0531 GMT
Overnight 0.00001 0.00001
One-month 0.01/0.05 0.005/0.05
Three-month 0.05/0.10 0.05/0.10
Six-month 0.20/0.24 0.20/0.25
One-year 0.42/0.52 0.43/0.53
For more live quotes of forwards and interbank rates, click on.
THE HONG KONG DOLLAR TRADED BACK AT THE TOP OF ITS TRADING band against the U.S. dollar on Wednesday, with sentiment boosted by extended gains in the domestic stock market and signs of an improving global economy.
HONG KONG STOCKS ROSE FOR A THIRD STRAIGHT DAY ON WEDNESDAY as concerns over Dubai debt problems receded and positive U.S. home sales data restored confidence in a global economic recovery.
The Hang Seng Index was up 1.28 percent, while the
China Enterprises Index of top locally listed mainland Chinese stocks surged 1.64 percent at the midday break.
DEALERS EXPECTED THE HONG KONG DOLLAR WILL CONTINUE TO hover at the current level, with the prospect of more funds flowing into the territory as recent data provided more evidence that the local economy is recovering.
HONG KONG RETAIL SALES IN OCTOBER ROSE FROM A YEAR EARLIER for a second straight month, by 9.8 percent and at a much faster pace, government data showed on Tuesday.
THE HONG KONG DOLLAR IS PEGGED AT 7.80 TO THE U.S. DOLLAR but can trade between 7.75 and 7.85. The Hong Kong Monetary Authority (HKMA) is usually obliged to intervene when the local currency hits 7.75 or 7.85.
LOCAL INTERBANK RATES WERE STEADY TO A TAD LOWER ON Wednesday because of abundant liquidity in the banking system following frequent intervention by the HKMA over recent months to defend the currency peg amid strong capital inflows..
Three-month Hibor stayed at 0.10000 percent,
its lowest level since February 2004.
One-year Hibor was fixed at 0.51857 percent,
down from 0.52929 percent on Tuesday and down 25 basis points from rates a month earlier.
The aggregate balance -- the sum of balances on clearing
accounts maintained by banks with the HKMA -- stood at HK$302.956 billion on Wednesday.
MARKET/ECONOMIC NEWS
> Stock market reports and updates: > Yuan reports and updates: > U.S. dollar reports and updates: > Emerging Asia forex reports and updates: (Reporting by Christina Lo; Editing by Ken Wills) ((christina.lo.reuters.com@reuters.net; +852 2843 6960; Reuters Messaging:christina.lo.reuters.com@reuters.net))
For more information on Top News, visit http://topnews.reuters.com Hong Kong news Hong Kong stock report China news Hong Kong hot stocks All foreign exchange Hong Kong diary Press digests Keywords: MARKETS HONGKONG/FORWARDS
(If you have a query or comment on this story, send an email to news.feedback.asia@thomsonreuters.com)) (Multimedia versions of Reuters Top News are now available for: * 3000 Xtra: visit http://topnews.session.rservices.com * BridgeStation: view story .134 For more information on TopNews, please visit http://topnews.reuters.com)
