HONG KONG (Dow Jones)--The Hong Kong dollar rose against the U.S. dollar Monday, as investors' risk appetite returned after a better-than-expected U.S. jobs report.
The U.S. dollar was at HK$7.7551 in late Asian trade, lower than HK$7.7560 late Friday. It was fixed at HK$7.7557 earlier Monday.
Data from the U.S. Labor Department showed nonfarm payrolls increased 243,000 in January. That compared with a median forecast increase of 125,000 in a Dow Jones Newswires survey, and was the largest gain since April. The jobless rate fell from 8.5% to 8.3%, its lowest since February 2009.
Currency traders nevertheless expect the Hong Kong dollar to be rangebound in quiet trade, as market participants await the outcome of Greece's sovereign debt bailout negotiations. Traders project the U.S. dollar to stay in a range of HK$7.7530 to HK$7.7580 in the near term.
"There is no clear direction for the local currency, as it's tracking the rangebound euro as well," said a trader at a U.K. bank in Hong Kong.
Greece's political leaders and creditors will meet later in the global day to seek common ground on terms of a second bailout that Greece needs to avoid defaulting on its government debt. After meeting for several hours over the weekend, Prime Minister Lucas Papademos said the parties had agreed on some conditions, but that other conditions needed further discussion.
The one-year U.S. dollar/Hong Kong dollar forward contract was quoted at a discount of 30 points to the spot rate, compared with a 23-point discount late Friday.
-By Fiona Law, Dow Jones Newswires; 852-2802-7002; fiona.law@dowjones.com
