HKMA buys HK$1.586 bln from market as currency hits weak end of trading band
HONG KONG, May 12 (Reuters) - Hong Kong's de-facto central bank bought HK$1.586 billion ($202 million) from the market on Thursday to stop the local currency weakening and breaking its peg to the U.S. dollar, the first time it has intervened in eighteen months.
The Hong Kong dollar HKD=D3 is pegged to a tight band of between 7.75 and 7.85 versus the U.S. dollar.
It has been softening in recent months as U.S. interest rates rise while a surfeit of cash in the local banking system has kept Hong Kong rates pinned down.
Reporting by Donny Kwok; Editing by xxx
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