Latest Change
USD/HKD Spot 7.7676 -0.0007
1-year USD/HKD Forward* -34 +24
Overnight Hibor 0.08% Unchanged
1-month Hibor 0.32% Unchanged
3-month Hibor 0.36% Unchanged
1-year Hibor 0.81% Unchanged
2-year EF Note 0.29% -1 bp
10-year EF Note 1.49% +1 bp
*mid-point of bid-offer spread
HONG KONG (Dow Jones)--The Hong Kong dollar rose against the U.S. dollar Friday, lifted by improved investor sentiment with a stronger euro and positive local stocks.
In late Asian trade, the U.S. dollar was at HK$7.7676, lower than HK$7.7683 late Thursday. It was fixed at HK$7.7682 earlier Friday.
Traders said the local unit was boosted by investor sentiment, tracking the euro which benefited from sovereign bond auctions in Spain and Italy Thursday enjoying a level of demand much stronger than market watchers had expected.
This sentiment also pushed the benchmark Hang Seng Index to end 0.6% higher on the day at 19,204.42.
But the Hong Kong dollar "is likely to remain rangebound early next week," said a trader at a U.K. bank, "as investors are likely to stay on the sidelines before China releases its [initial estimate of 2011] gross domestic product growth" on Jan. 17.
China's GDP likely grew around 9.2% in 2011, economists said, down from 10.4% growth in 2010. Anything lower and the Hong Kong dollar could suffer.
Traders expect the U.S. unit to trade Monday in a range of HK$7.7660 to HK$7.7690.
The one-year U.S. dollar/Hong Kong dollar forward contract was quoted at a discount of 34 points to the spot rate, compared with a 58-point discount late Thursday.
-By Fiona Law, Dow Jones Newswires; 852-2802-7002; fiona.law@dowjones.com
