HONG KONG (Dow Jones)--The Hong Kong dollar fell against the U.S. dollar Wednesday, as corporate demand for the safe-haven greenback strengthened amid the ongoing euro-zone debt crisis.
In late Asian trade, the U.S. dollar was at HK$7.7782, up from HK$7.7677 late Tuesday. The U.S. unit was fixed at HK$7.7684 earlier Wednesday.
Traders said they expect the U.S. dollar to be well supported on an uncertain global outlook. Still, the U.S. dollar/Hong Kong dollar pair is likely to trade in a narrow range in the absence of market-moving news. They said they expect the U.S. dollar to trade between HK$7.7660 and HK$7.7720 Thursday.
"I've spotted a U.K. bank buying about US$100 million at the HK$7.7670 level, spurring some local banks to follow suit. The uptrend may continue as the buying run has not finished yet," said a senior trader at a local bank.
Another senior trader at a U.K. bank added: "The ongoing euro-zone debt crisis will keep the U.S. dollar on an upward bias ahead."
The one-year U.S. dollar/Hong Kong dollar forward contract was quoted at a discount of 60 points to the spot rate, widening from a 33 point discount late Tuesday.
-By Chester Yung, Dow Jones Newswires; 852-2832 2331; chester.yung@dowjones.com
