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(AFX UK Focus) 2008-11-07 04:32
HK dollar stays strong, interbank rates slip
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HONG KONG, Nov 7 (Reuters) - The following is a snapshot of the Hong Kong foreign exchange and money markets on Friday.
Morning Previous Close
At 0357 GMT At 0855 GMT


HK$ SPOT 7.7501/02 7.7501/02

FORWARDS


Three-month -8/0 -13/-8
Six-month -10/10 -25/-13
One-year 30/60 5/30

INTERBANK RATES (PERCENTAGE)


Overnight 0.10/0.50 0.10/0.50
One-month 1.10/1.20 1.25/1.35

Three-month 2.15/2.25 2.30/2.40


Six-month 2.40/2.50 2.60/2.70
One-year 2.45/2.55 2.65/2.75

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

  • THE HONG KONG DOLLAR REMAINED CLOSE TO THE TOP OF ITS trading band on Friday, while local interbank rates fell further after recent liquidity injections by the city's central bank and following a drop in U.S. dollar interbank rates overnight.

  • THE LOCAL CURRENCY TRADED BETWEEN 7.7501 AND 7.7506 PER U.S. dollar during the session, just a whisker below its upper limit at 7.75.
    "The spot (USD) was still heavy. We saw a lot of names

    selling including a big UK bank, we don't know what is going on here," a dealer said.
    Under the exchange rate mechanism, the Hong Kong Monetary

    Authority is committed to buy U.S. dollars from licensed banks in exchange for Hong Kong dollars if the spot rate hits 7.75.

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

  • THE ONE-MONTH INTERBANK OFFERED RATE WAS FIXED AT 1.19214 percent, down 14.7 basis points from Thursday and its lowest level since mid-February, 2005.
    The three-month Hibor fell 19.8 basis points to

    2.23714 percent, the lowest level since Sept. 17.
    Delears attributed the fall to an improved liquidity

    following a series of fund injections by the HKMA in the past month, and the decline of U.S. dollar lending rates.

  • HONG KONG DOLLAR FORWARDS WERE TRAPPED IN A NARROW RANGE IN quiet trade.
    A dealer said nobody wants to take much risk over the

    weekend.

  • HONG KONG LENDER - STANDARD CHARTERED BANK SAID it had raised its mortgage rates for new homebuyers from Nov. 5 by 50-100 basis points in accordance to market environment. The revised mortgage rates are prime minus 1.25 percent to 2.00 percent, equivalent to 3.50 to 4.25 percent. The bank currently sets its Hong Kong prime lending rate at 5.5 percent.

    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) ((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

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