HKMA intervened as Hong Kong dollar weakened, bought HK$2.16 bln

Reuters
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HONG KONG, Aug 15 (Reuters) - The Hong Kong Monetary Authority (HKMA) stepped into the currency market in the U.S. trading hours on Tuesday, buying HK$2.159 billion ($275.05 million) in Hong Kong dollars as the local currency repeatedly hit the lower end of its allowable trading band.

The latest intervention will reduce the aggregate balance - the sum of balances on clearing accounts maintained by banks with the HKMA - to HK$107.247 billion on Aug. 16, according to Reuters data.

The local dollar hit the weaker end of its trading range at 7.85 per U.S. dollar, nudging up a key lending rate that could push borrowing costs higher.

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.

HKMA last stepped into currency markets in May as the local dollar hit the weak end of its trading band.

($1 = 7.8496 Hong Kong dollars) (Reporting by Twinnie Siu and Donny Kwok; Editing by Eric Meijer)

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