(Corrects headline and first paragraph to say HK$4.65 bln, not
HONG KONG Dec 12 The Hong Kong Monetary
Authority (HKMA) stepped into the currency market on Wednesday,
selling HK$4.65 billion ($600 million) in Hong Kong dollars as
the local currency repeatedly hit the strong end of its
According to Reuters data, the latest intervention
will lift the aggregate balance - the sum of balances on
clearing accounts maintained by banks with the HKMA - to
HK$225.009 billion on Dec. 14.
Before this injection, the HKMA had sold a total of $9.25
billion worth of Hong Kong dollars since October 20.
Market players said besides the recent inflows to purchase
stocks in Hong Kong, the strength of the local currency was also
supported by booming U.S. dollar bond issuances as some of the
issuers converted their proceeds to Hong Kong dollars for trade
or investment use.
The Hong Kong dollar is pegged at 7.8 to the U.S. dollar but
can trade between 7.75 and 7.85 to the U.S. dollar. Under the
currency peg, the HKMA is obliged to intervene when the Hong
Kong dollar hits 7.75 or 7.85 to keep the band intact.
The currency traded at 7.7501 against the U.S. dollar at
($1 = 7.7500 Hong Kong dollars)
(Reporting by Michelle Chen; Editing by Anne Marie Roantree)