HONG KONG (Dow Jones)--The Hong Kong dollar was higher against the U.S. dollar late Friday, due to a decline in the U.S. currency offshore, while the local currency was also supported by some corporate demand ahead of the end of the third quarter.
In late Asian trade, the U.S. dollar was at HK$7.7920, down from HK$7.7953 late Wednesday. The U.S. unit was fixed at HK$7.7943 earlier Friday. Financial markets in Hong Kong were closed Thursday due to a typhoon.
Traders said the Hong Kong dollar is expected to trade in a wider range in the near-term amid volatility in the equities markets. They expect the U.S. dollar to trade in a band of HK$7.7880 to HK$7.8000 in the near-term.
"Trading volume remains modest today, reflecting caution among investors," says a Hong Kong-based trader at a U.S. bank.
The U.S. dollar fell against the yen in Asia Friday due to Japanese exporters' sales related to their fiscal half-year end, traders said. At 0720 GMT, the greenback stood at Y76.65, from Y76.85 in New York Thursday.
The one-year U.S. dollar/Hong Kong dollar forward contract was quoted at a discount of 305 points to the spot rate, compared with a 330-point discount late Wednesday.
-By Susanna Tai, Dow Jones Newswires; 852-2832 2338; susanna.tai@dowjones.com
