April 10, 2015 / 8:47 AM / 4 years ago

HKMA sells HK$6.2 bln in Hong Kong dollars to defend its currency peg

HONG KONG, April 10 (Reuters) - The Hong Kong Monetary Authority (HKMA) stepped into the currency market again and sold HK$6.2 billion ($800 million) in Hong Kong dollars on Friday as the local currency hit the strong end of its trading range.

It was the second time the city’s de-facto central bank intervened the market since August. The HKMA sold HK$3.1 billion on Thursday.

According to the HKMA, the latest intervention will lift the aggregate balance - the sum of balances on clearing accounts maintained by banks with the authority - to HK$248.485 billion on April 14.

The Hong Kong dollar is pegged at 7.8 to the U.S. dollar, but can trade between 7.75 and 7.85. 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. (Reporting by Michelle Chen; Editing by Richard Borsuk)

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