The following is a snapshot of the Hong Kong foreign exchange and money markets on Monday.

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At 0445 GMT At 0900 GMT

HK$ SPOT 7.7506/10 7.7512/14

FORWARDS

Three-month -3/7 19/31

Six-month 25/45 70/90

One-year 115/165 205/255

INTERBANK RATES (PERCENTAGE)

Overnight 0.20/0.30 0.30/0.50

One-month 1.50/1.60 2.15/2.25

Three-month 3.00/3.10 3.20/3.30

Six-month 3.20/3.30 3.30/3.50

One-year 3.20/3.30 3.30/3.50

* For more live quotes for forwards and interbank rates,

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* The Hong Kong dollar strengthened against the U.S. dollar on Monday, due in part to some players unwinding carry trades, covering their short positions on Hong Kong dollar. Local interbank lending rates fell across the board after the central bank injected liquidity into the system on Friday and amid lower U.S. dollar interbank rates.

* The local currency was trading at 7.7506/10 per U.S. dollar at 0445 GMT, staying close to its upper limit at 7.75.

* The Hong Kong Monetary Authority (HKMA) injected HK$2.813 billion into the territory’s banking system late on Friday in a bid to stem a rise in the Hong Kong dollar and keep it within official trading limits against the U.S. dollar. As a result, the aggregate balance — the sum of balances on clearing accounts maintained by banks with the HKMA — was projected to increase to HK$34.27 billion on Tuesday when the transactions are settled.

* The Hong Kong currency is pegged at 7.8 to the U.S. dollar but can trade between 7.75 and 7.85.

* Dealers said the HKMA may step in to the market again if the Hong Kong dollar remains strong.

* The one-month Hong Kong interbank offered rate was fixed at 1.59643 percent at 0315 GMT, down from 2.10500 percent on Friday and its lowest level since May 29. The three-month Hibor was set at 3.08143 percent, falling 26.5 percent from Friday.

A dealer said much of the activity in the Hong Kong interbank market was in the overnight to one-month rates, and some banks remained cautious about lending longer-dated term money because of counterparty risk.

* U.S. dollar funding costs fell in Asia on Monday.

* Hong Kong dollar forwards fell, tracking softer interbank rates.

* The Hong Kong government will release retail sales data for September at 0830 GMT. A Reuters survey of economists gave a median forecast of 9 percent growth in value from a year earlier.

MARKET/ECONOMIC NEWS

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Source: http://www.afxnews.com

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