November 29, 2012 / 11:47 PM / 5 years ago

HKMA intervenes to defend peg, selling HK$3.045 bln

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HONG KONG, Nov 30 (Reuters) - The Hong Kong Monetary Authority (HKMA) stepped into the currency market in New York trading hours on Thursday, selling HK$3.045 billion ($393 million) in Hong Kong dollars as the local currency repeatedly hit the strong end of its official trading range.

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$192.838 billion on Dec. 3.

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. ($1 = 7.7500 Hong Kong dollars) (Reporting by Twinnie Siu; Editing by Eric Meijer)

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