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(AFX UK Focus) 2009-11-30 06:24
HK dollar hit a two-month low on Dubai jitters
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HONG KONG, Nov 30 (Reuters) - The following is a snapshot of the Hong Kong foreign exchange and money market on Monday.
Latest Previous Day
At 0539 GMT At 0519 GMT


HK$ SPOT 7.7502/03 7.7500/01

FORWARDS


Three-month -57/-52 -53/-50
Six-month -114/-106 -103/-98
One-year -240/-220 -223/-213

INTERBANK RATES (PERCENTAGE)


Overnight 0.00001 0.00001/0.03
One-month 0.02/0.05 0.005/0.06
Three-month 0.05/0.10 0.03/0.11
Six-month 0.20/0.23 0.20/0.28
One-year 0.45/0.55 0.50/0.56

For more live quotes of forwards and interbank rates, click on.

  • THE HONG KONG DOLLAR WEAKENED AGAINST THE U.S. DOLLAR ON Monday, hitting its lowest level in two months, with some dealers saying some foreign banks were repatriating funds back to their home countries amid concern about the potential fall-out from Dubai's debt problems.
    The local currency dropped to as low as 7.7506, its

    weakest level since late September, Reuters data showed. It was quoted at 7.7502/03 versus the U.S. dollar at 0539 GMT.

  • ONE DEALER SAID THERE WAS SOME BIDDING INTEREST IN THE U.S. dollar by U.K. and U.S. banks and he suspected the move might be related to Dubai's woes.
    Some banks, which have exposure to the Dubai debt crises,

    may need to repatriate some funds back to their headquarters, another trader said.

  • FINANCIAL MARKETS WERE RATTLED LAST WEEK AFTER DUBAI SAID it would ask creditors of Dubai World and property group Nakheel to agree a standstill on debt payments as part of a restructuring.
    The United Arab Emirates' central bank set up an emergency

    facility on Sunday to support bank liquidity in the first policy response to Dubai's debt woes, which had threatened to paralyse lending and derail economic recovery.

  • HOWEVER, DEALERS SAID THEY HAD NOT SEEN MASSIVE CAPITAL outflows from Hong Kong. One dealer expected the spot rate to trade in a range of 7.7500-7.7515 this week.

  • THE HONG KONG MONETARY AUTHORITY SAID ON FRIDAY THAT THE financial problems of Dubai World should not pose any systemic risk to the Hong Kong banking sector, as the lenders' total exposure to the United Arab Emirates, of which Dubai is a member, amounted to only 0.39 percent of their total assets as at the end of September 2009.

  • HONG KONG STOCKS REBOUNDED ON MONDAY WITH BANKING SHARES recovering from steep losses last Friday on Dubai's debt problems.
    The Hang Seng Index was up 3.29 percent at the

    midday break, while the China Enterprises Index of top locally listed mainland Chinese stocks climbed 4.25 percent.

  • 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 CONTINUED TO DECLINE ON MONDAY because of abundant liquidity in the banking system.
    Three-month Hibor was fixed at 0.10107 percent,

    down from Friday's 0.10964.

    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 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

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