HKMA buys HK$9.255 billion from market as currency hits weak end of trading band

HONG KONG – Hong Kong’s de-facto central bank bought HK$9.255 billion ($1.18 billion) from the market in New York trading hours to stop the local currency weakening and breaking its peg to the U.S. dollar.

The Hong Kong dollar is pegged to a tight band of between 7.75 and 7.85 versus the U.S. dollar.

The aggregate balance – the key gauge of cash in the banking system – will decrease to HK$306.337 billion on June 16, an HKMA spokeswoman said on Wednesday.

($1 = 7.8499 Hong Kong dollars)

(Reporting by Donny Kwok; Editing by Jacqueline Wong)