Latest Change
USD/HKD Spot 7.7703 +0.0001
1-year USD/HKD Forward* -223 Unchanged
Overnight Hibor 0.06% Unchanged
1-month Hibor 0.12% Unchanged
3-month Hibor 0.24% +4 bps
1-year Hibor 0.65% +7 bps
2-year EF Note 0.23% Unchanged
10-year EF Note 1.30% -7 bps
*mid-point of bid-offer spread

The Hong Kong dollar was steady against the U.S. dollar Thursday in quiet trade, with market participants saying a sharp fall in the local currency isn't likely in the near term due to tight liquidity.

In late Asian trade, the U.S. dollar was at HK$7.7703, marginally up from HK$7.7702 late Wednesday. The U.S. unit was fixed at HK$7.7712 earlier Thursday.

A senior trader at a local bank said trading volume was down by about a third from a week earlier. "Most investors are waiting on the sidelines ahead of the Group of 20 summit outcome and the U.S. non-farm payrolls data due Friday, leaving the U.S. dollar-Hong Kong dollar pair in a very tight range," the trader said.

The trader expects the greenback to move between HK$7.7680 and HK$7.7730 Friday.

Another trader at a Chinese bank said the local banking system's continued tight liquidity in Hong Kong dollars could keep the U.S. unit under pressure, despite renewed fears over Greece's debt situation and whether the country would remain in the European Union.

Data issued Oct. 31 from the Hong Kong Monetary Authority showed year-on-year domestic credit growth slowed markedly in September to the slowest pace in 13 months, while a Morgan Stanley report Wednesday noted that total liquidity in Hong Kong's banking system is at its lowest since August 2010, at HK$1.24 trillion.

The one-year U.S. dollar/Hong Kong dollar forward contract was quoted at a discount of 223 points to the spot rate, the same as late Wednesday.