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HKMA Sells HK$6.38B in NY, Currency Hits Strong End of Band

HONG KONG, Oct 28 (Reuters) - The Hong Kong Monetary Authority sold HK$6.378 billion ($822.97 million) into the market in New York trading hours after the local currency hit the strong end of its trading band, according to data released by the HKMA.

The aggregate balance - the key gauge of cash in the banking system - will increase by HK$31.798 billion including HK$25.420 billion sold in Hong Kong trading hours, to HK$449.636 billion on Oct. 29, an HKMA spokeswoman said early on Wednesday.

Hong Kong’s aggregate balance will hit an all time high on Oct. 29 as the world’s largest IPO, Chinese fintech giant Ant Group, attracts cash into the financial hub.

The aggregate balance would surpass the previous record of HK$424 billion set in November 2015, according to data from Refinitiv’s Eikon.

The Hong Kong dollar is pegged in a narrow range of 7.75-7.85 to the U.S. dollar. The HKMA has been conducting sales in recent sessions to weaken the currency to keep it within that trading band.

($1 = 7.7500 Hong Kong dollars)

(Reporting by Donny Kwok; Editing by Shri Navaratnam)

Source: Reuters

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