HKMA buys HK$4.08 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$4.082 billion ($520 million) from the market on Thursday to stop the local currency weakening and breaking its peg to the U.S. dollar.
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 as U.S. interest rates rise while a surfeit of cash in the local banking system keeps Hong Kong rates pinned down.
The aggregate balance - the key gauge of cash in the banking system - will decrease to HK$331.923 billion on May 16, the HKMA data shown on Thursday.
($1 = 7.8499 Hong Kong dollars)
Reporting by Donny Kwok Editing by Mark Potter
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