HONG KONG (Dow Jones)--The Hong Kong dollar fell against the U.S. dollar Thursday as foreign banks bought the greenback on bargain hunting.
In late Asian trade, the U.S. dollar was at HK$7.7555, up from HK$7.7541 late Wednesday. The U.S. unit was fixed at HK$7.7543 earlier Thursday.
Traders tipped the U.S. dollar to trade in a HK$7.7530-HK$7.7570 band Friday.
A senior trader at a local bank said some U.S. banks bought the greenback on dips, pushing up the U.S. currency. "Still, I don't expect a big rise [in the U.S. dollar] as the recent strength in local stocks is continuing to lure inflows," the senior trader said.
Another senior trader at a Chinese bank said market sentiment has "broadly improved" since January. "Many foreign banks have bought the local currency and I expect the trend to continue," the trader said.
The one-year U.S. dollar/Hong Kong dollar forward contract was quoted at a discount of 59 points to the spot rate, compared with a 39-point discount late Wednesday.
-By Chester Yung, Dow Jones Newswires; 852-2832 2331; chester.yung@dowjones.com
