HONG KONG (Dow Jones)--The Hong Kong dollar fell against the U.S. dollar Thursday, weighed by a fall in the local stock market.
In late Asian trade, the U.S. dollar was at HK$7.7944, up from HK$7.7938 late Wednesday. The U.S. unit was fixed at HK$7.7939 earlier Thursday.
Traders said trading was relatively quiet ahead of U.S. President Obama's speech on the job market later Thursday, while China is scheduled to issue data including the consumer price index and industrial production figures on Friday. They said they expected the U.S. dollar to trade in a HK$7.7900-HK$7.7970 range Friday.
At 0740 GMT, the blue-chip Hang Seng Index was down 1.2% at 19,805.59, as the local market succumbed to profit-taking after it rose 2.2% over the past two sessions.
"Even though there are IPOs going forward (in Hong Kong), I don't expect the Hong Kong dollar will have much support," a trader at a local bank said, adding the IPOs may not attract large fund inflows due to prevailing uncertainties in equity markets.
Chow Tai Fook Jewellery Co., controlled by billionaire Cheng Yu-tung, and Guodian Technology & Environment Group Co. aim to raise a total of US$5 billion when they list on the Hong Kong stock exchange in the fourth quarter, people familiar with the matter said last week.
-By Susanna Tai, Dow Jones Newswires; 852-2832 2338; susanna.tai@dowjones.com
