HKMA sells HK$3.875 bln to keep HK dlr in trading band

HONG KONG, Nov 5 (Reuters) - Hong Kong's central bank, the Hong Kong Monetary Authority, on Thursday injected HK$3.875 billion (US$500 million) into the money market to stem an appreciating Hong Kong dollar HKD= and keep it within its fixed trading band.

The local currency has repeatedly hit the top of its trading band at 7.7500 on Thursday as its peg to a weak U.S. dollar is encouraging fund flows into Hong Kong assets, dealers said.

According to data on Reuters page HKMAOOC, the latest intervention will lift the aggregate balance -- the sum of balances on clearing accounts maintained by banks with the HKMA -- to HK$252.267 billion by Nov. 9.

The Hong Kong dollar is pegged at 7.80 to the U.S. dollar but can trade between 7.75 and 7.85 to the U.S. dollar.

Under the linked exchange rate mechanism, the HKMA is obliged to intervene in the market to keep the trading band intact if the currency hits 7.75 or 7.85.

By 0425 GMT, it was quoted at 7.7500/01. (Reporting by Christina Lo, Editing by Jacqueline Wong)