The HKD rose slightly against the USD Friday due to a tighter supply of the unit in the local interbank market. In late Asian trade, the U.S. dollar was at HK$7.7660, slightly down from HK$7.7667 late Thursday. The USD unit was fixed at HK$7.7662 earlier Friday.
Traders said they expect the USD to remain in a tight range between HK$7.7650 and HK$7.7700 in the near term as investors stay on the sidelines ahead of the U.S. nonfarm payroll data to be released later in the global day. They said the USD isn’t likely to fall sharply because lingering concerns over the euro-zone debt crisis will provide support to the safe-haven greenback.
The one-year USD/HKD forward contract was quoted at a premium of 15 points to the spot rate compared with a 30-point premium late Thursday.
EasyForexNews Research Team