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(AFX UK Focus) 2008-11-04 05:26
HK dollar remains strong, interbank rates fall
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HONG KONG, Nov 4 (Reuters) - The following is a snapshot of the Hong Kong foreign exchange and money markets on Tuesday.
Latest Previous Close
At 0449 GMT At 0921 GMT


HK$ SPOT 7.7503/05 7.7502/04

FORWARDS


Three-month -2/8 0/10
Six-month 25/45 30/48
One-year 100/130 87/138

INTERBANK RATES (PERCENTAGE)


Overnight 0.20/0.50 0.25/0.50
One-month 1.45/1.55 1.60/1.80

Three-month 2.70/2.80 2.90/3.10


Six-month 3.00/3.10 3.10/3.30
One-year 3.05/3.15 3.10/3.30

  • FOR MORE LIVE QUOTES FOR FORWARDS AND INTERBANK RATES, click on.

  • THE HONG KONG DOLLAR REMAINED STUBBORNLY STRONG AGAINST THE U.S. dollar on Tuesday, with players continuing to deleverage on their long U.S. dollar positions despite the central bank intervening in New York overnight.
    The local currency was trading at 7.7503/05 per U.S.

    dollar, hovering just a whisker below its upper limit at 7.75.
    The Hong Kong Monetary Authority (HKMA) injected HK$853

    million into the banking system during New York trading hours on Monday to stem a rise in the local currency and keep it within official trading limits against the U.S. dollar.

  • DEALERS SAID THE HKMA MAY CONTINUE TO INJECT LIQUIDITY INTO the market when the local currency is seen staying firm on strong demand.

  • THE HONG KONG CURRENCY IS PEGGED AT 7.8 TO THE U.S. DOLLAR but can trade between 7.75 and 7.85.

  • LOCAL INTERBANK LENDING RATES EXTENDED THEIR FALL, TRACKING lower U.S. dollar interbank rates, dealers said.
    The one-month Hong Kong interbank offered rate

    was fixed at 1.54000 percent, down 5 basis points from Monday. The three-month Hibor declined 29 basis points from Monday to 2.79143 percent, its lowest level since Sept. 17.
    Dealers expected interbank lending rates to remain soft

    after central banks worldwide took aggressive measures to unclog stress in money markets.

  • THE MARKET WAS DIVIDED ON THE PROSPECT OF AN INTEREST RATE cut in Hong Kong.
    HSBC said in a research report on Monday that they expect

    both the savings rate and best lending rates in Hong Kong to remain unchanged for this year and next year.
    "The saving rate has already hit rock bottom and there is

    no room for banks to cut their best lending rate," HSBC said, adding there was no upward pressure on the best lending rate as Hibor rates have followed USD Libor rates down from their peak.
    Local media on Monday quoted Bank of East Asia's

    chairman David Li as saying he expects to see room for a cut in Hong Kong's prime lending rate before the end of the year after banks raise their mortgage rates.

    MARKET/ECONOMIC NEWS

    > Stock market reports and updates: > U.S. dollar reports and updates: > Yuan reports and updates: > Emerging Asia forex reports and updates: (Reporting by Christina Lo, Editing by Jacqueline Wong) ((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

    (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)

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