HONG KONG (Dow Jones)--The Hong Kong dollar rose against the U.S. dollar amid quiet trade, on the back of profit-taking by some European banks in the greenback.
In late Asian trade, the U.S. dollar was at HK$7.7829, down from HK$7.7853 late Monday. The U.S. unit was fixed at HK$7.7829 earlier Tuesday.
Traders said they expect trading in the U.S. dollar/Hong Kong dollar pair to remain in a tight range ahead of the Christmas holiday. Lingering worries over the euro-zone sovereign debt crisis will continue to weigh on the market after the Christmas break. They expect the U.S. dollar to trade between HK$7.7800 and HK$7.7860 Wednesday.
"Transaction volume has been shrinking as many traders have left for their holidays, leaving the U.S. dollar/Hong Kong dollar pair rangebound amid quiet trade," said a trader at a Singaporean bank.
"I've spotted some European banks selling the greenback on profit-taking," the trader added.
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 127-point discount late Monday.
-By Chester Yung, Dow Jones Newswires; 852-2832 2331; chester.yung@dowjones.com
