HONG KONG (Dow Jones)--The Hong Kong dollar rose against the U.S. dollar for the third consecutive session Wednesday due to rising optimism the Greek parliament will approve austerity measures key to avoiding a sovereign default that could spark a wider crisis.
In late Asian trade, the U.S. dollar was at HK$7.7827, down from HK$7.7866 late Tuesday. The U.S. unit was fixed at HK$7.7830 earlier Wednesday.
Traders said the safe-haven U.S. dollar is likely to remain under pressure this week on improving risk sentiment. They said they expect the U.S. dollar to trade between HK$7.7800 and HK$7.7850 Thursday.
"A major U.S. bank sold about US$30 million for the local currency at the HK$7.7830 level on corporate demand amid better risk appetite, following a sale by a major European bank this morning," said a senior trader at a U.S. bank.
"Most market participants expect the majority of Greek parliament to adopt the proposed austerity plan to help the euro-zone member avert a sovereign debt default," the trader added.
A senior trader at a local bank said: "I expect the U.S. dollar/Hong Kong dollar pair to remain in downward bias as many orders of selling U.S. dollar are still in the pipeline."
The one-year U.S. dollar/Hong Kong dollar forward contract was quoted at a discount of 220 points to the spot rate, narrowing from a 232-point discount late Tuesday.
-By Chester Yung, Dow Jones Newswires; 852-2832 2331; chester.yung@dowjones.com
