HKMA intervenes as HK dollar weakens, buys HK$4.79 bln

Reuters

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    NEW YORK, May 16 (Reuters) - The Hong Kong Monetary
Authority (HKMA) stepped into currency markets on Wednesday,
buying HK$4.79 billion ($610.20 million) as its currency hit the
weak end of its trading band.
    The intervention will reduce the forecast aggregate balance
- the sum of balances on clearing accounts maintained by banks
with the HKMA - to HK$122.14 billion on Friday, according to
Reuters data.
    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.
    The currency  HKD=D3  traded at 7.85 against the U.S. dollar
at 11:45 a.m. EDT (1545 GMT).

 (Reporting by Saqib Iqbal Ahmed
Editing by Chizu Nomiyama)
 ((saqib.ahmed@thomsonreuters.com; +1-646-223-6054; Reuters
Messaging: saqib.ahmed.thomsonreuters.com@reuters.net; Twitter
@SaqibReports))

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