HongKong . Hong Kong’s de facto central bank said it would not necessarily step into the currency market to support the local dollar despite it touching the bottom end of its trading band Thursday.
As trading began in Asia, Hong Kong’s dollar fell to HK$7.85 against the US dollar -- the lower limit of its permitted HK$7.75-7.85 band -- for the first time since the range was introduced in 2005.
The Hong Kong Monetary Authority said it is required to buy the local currency at HK$7.85 to US$1 under the city’s Linked Exchange Rate System if such requests were made by banks.
But the authority added that this practice, known as the weak-side Convertibility Undertaking, will not be automatically triggered. (AFP)