HONG KONG (Dow Jones)--The Hong Kong dollar rose against the U.S. dollar Friday as upbeat U.S. economic data overnight raised risk appetite which led to slight profit-taking in the greenback.
In late Asian trade, the U.S. dollar was at HK$7.7812, down from HK$7.7841 late Thursday. The U.S. unit was fixed at HK$7.7815 earlier Friday.
Traders said they expect the safe-haven U.S. dollar to remain well-supported amid lingering concerns over the euro-zone debt crisis, and trade within HK$7.7780 and HK$7.7850 for the next week.
"The better-than-expected U.S. jobless data overnight has improved risk sentiment, triggering some greenback selling. Still, the pair is likely to remain in a narrow range in quiet trade ahead of the weekend," said a trader at a Singapore bank.
Initial jobless claims filed in the U.S. last week brought some cheer to the market. The U.S. Labor Department said the 366,000 claims recorded were the lowest since May 2008. Also helping sentiment was the latest gauge of U.S. mid-Atlantic manufacturing activity which showed a healthy rebound from the month of November.
"Still, lingering concerns about the euro-zone sovereign-debt crisis will support the U.S. dollar at around HK$7.7750 in December," another senior trader at a local bank said.
The one-year U.S. dollar/Hong Kong dollar forward contract was quoted at a discount of 130 points to the spot rate, compared with a 97-point discount late Thursday.
-By Chester Yung, Dow Jones Newswires; 852-2832 2331; chester.yung@dowjones.com
