HKMA sells HK$3.9 bln to keep Hong Kong dollar in trading band on Oct 1

HONG KONG - The Hong Kong Monetary Authority (HKMA) said it had stepped into the currency market and sold HK$3.875 billion (S$717 million) in Hong Kong dollars on Thursday afternoon as the local currency hit the strong end of its trading range.

Hong Kong's financial market were closed on Thursday for the National Day holiday.

The HKMA said the latest intervention will lift the aggregate balance - the sum of balances on clearing accounts maintained by banks with the authority - to HK$361.828 billion on Oct. 5, when the injected funds will be settled.

The Hong Kong dollar is pegged at 7.8 to the U.S. dollar, but can trade between 7.75 and 7.85. Under the currency peg, the HKMA is obliged to intervene when the Hong Kong dollar hits 7.75 or 7.85 to keep the band intact.