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HONG KONG: The Hong Kong dollar consolidated on Tuesday after hitting a seven-week high against the US dollar in the previous session, while interbank rates were steady, trapped in a narrow range.
The local currency traded between 7.7583 and 7.7590 during the session. It had touched a high of 7.7580 during London and New York trading on Monday, its strongest level since Jan. 15, amid capital inflows into the city's stock market and on speculation of yuan appreciation, dealers said.
Some dealers said the USD/HKD spot rate was likely to consolidate in a range between 7.7580 and 7.7620 in the near term. The Hong Kong dollar is pegged at 7.80 to the US dollar but can trade between 7.75 and 7.85. Local interbank rates were little changed as the market was still flooded with liquidity. One-year Hibor was fixed at 0.53000 per cent, softening from Monday's 0.53857 per cent. -Reuters
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