|Day's range||7.814 - 7.822|
|52-week range||7.7555 - 7.8289|
The Hong Kong dollar fell to its softest level in nearly two years against the U.S. dollar in late morning trade on Thursday. The Hong Kong dollar's depreciation is due to strong demand for U.S. dollars near the end of the year and its weakness is expected to continue as monetary policy normalisation and U.S. tax cuts could bring more funds back to the United States. The Hong Kong dollar, pegged against the greenback, fluctuates between 7.75 and 7.85 per dollar, and the HKMA is required to intervene if it hits either end of the currency band.
The Hong Kong dollar on Tuesday fell to its weakest against the U.S. dollar in three months, triggered by strong demand for the greenback as the year draws to a close, analysts said. Earlier in the session, the Hong Kong dollar touched 7.8211 per dollar, its lowest since Sept. 7. "Heading to the year-end, we look for further HKD weakness as the HKMA granted the green light for HKD depreciation to its weak side of convertibility of 7.85 and verbally removed the threat of extra EFBNs issuance in the near term," said Ken Cheung, senior Asian FX strategist, Mizuho Bank.
The Hong Kong dollar has retreated from its sharp rally last week triggered by the yuan’s rise and broad weakness in the U.S. dollar, but analysts expect low interest rates will keep the currency on the weaker side of its narrow trading band. The Hong Kong dollar spot rate was marginally firmer against the dollar at 7.8116 by 0758 GMT on Thursday, and is on track to finish the week slightly higher, preserving all of its gains from last week. Analysts said they expected the Hong Kong dollar to remain weak, primarily because of a widening interest rate differential as the Federal Reserve progresses with rate rises.
The Hong Kong dollar eased to its lowest level low against the U.S. dollar in 18 months on Tuesday as the currency moved toward the lower end of its trading band between 7.75-7.85. Hong Kong's currency has been weakening steadily this year, as the interest rates charged by the city's banks have failed to follow U.S. interest rates higher.
The Hong Kong dollar firmed marginally against its U.S. counterpart on Thursday but traders expect the steady weakening trend since the beginning of the year to continue, driven by excess liquidity and widening interest rate spreads between the territory and the United States. 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 arrangement, the city's de facto central bank the Hong Kong Monetary Authority (HKMA) is obliged to intervene when the Hong Kong dollar hits 7.75 or 7.85 to keep the band intact.
May 12 (Reuters) - Kaisun Energy Group Ltd- * Q1 profit 12.1 million hkd versus -5.9 million hkd lossyear ago * Qtrly revenue hk$74.6 million versus hk$6.4 millionSource text (http://bit.ly/2qckacR)Further company coverage: