Latest Change
USD/HKD Spot 7.7695 -0.0010
1-year USD/HKD Forward* -228 -7
Overnight Hibor 0.06% Unchanged
1-month Hibor 0.12% Unchanged
3-month Hibor 0.74% +54 bps
1-year Hibor 0.58% Unchanged
2-year EF Note 0.15% -5 bps
10-year EF Note 1.33% Unchanged
*mid-point of bid-offer spread

The Hong Kong dollar rose against the U.S. dollar Wednesday amid improved risk sentiment and a strong performance in the stock market.

In late Asian trade Wednesday, the U.S. dollar was at HK$7.7695, down from HK$7.7705 late Tuesday. The U.S. unit was fixed at HK$7.7686 earlier Wednesday.

Traders said continued strong demand in the local banking system for the Hong Kong unit kept the U.S. dollar under pressure, and that this situation is likely to persist till the year's end. They expect the greenback to trade within HK$7.7680 and HK$7.7730 Thursday.

"The rise in local stocks led to increased demand for the Hong Kong dollar, putting downward pressure on the greenback," said a trader at a Singapore bank.

The blue-chip Hang Seng Index rose 1.7% to 20,014.43 Wednesday as China's inflation slowed, raising expectations for an easing in the country's monetary policy. China's October consumer price index rose 5.5% from a year earlier, compared with September's 6.1% rise. Its producer price inflation also moderated to a 5.0% on year rise in October from 6.5% in September.

"Still, turnover has dropped significantly this week as the average daily transacted volume is only half that of last week, leaving the U.S. dollar/Hong Kong dollar pair in a very tight range," the trader added.

The one-year U.S. dollar/Hong Kong dollar forward contract was quoted at a discount of 228 points to the spot rate, compared with a 221-point discount late Tuesday.