HONG KONG (Dow Jones)--The Hong Kong dollar rose slightly against the U.S. dollar Monday, due to a rise in local shares amid easing woes about the euro-zone debt issue.
In late Asian trade, the U.S. dollar was at HK$7.7794, down from HK$7.7803 late Friday. The U.S. unit was fixed at HK$7.7790 earlier Monday.
Traders expect the greenback to trade in a HK$7.7770-HK$7.7800 band in the near term, with resistance at HK$7.7800.
"The Hong Kong dollar's gain is likely to be sustained, as there is solid corporate demand for the local currency," said a senior trader at a local bank.
The benchmark Hang Seng Index ended 1.9% higher at 19508.18, tracking gains in regional markets spurred by signs that Italy is moving to resolve its economic problems.
Italy's Prime Minister Silvio Berlusconi's resignation Saturday and the senate's approval on Friday of the country's budget for next year has calmed investors somewhat and helped boost risk appetite.
The one-year U.S. dollar/Hong Kong dollar forwards contract was quoted at a discount of 217 points to the spot rate, compared with a 215-point discount late Friday.
-By Fiona Law, Dow Jones Newswires; 852-2802-7002; fiona.law@dowjones.com
