HK dollar rangebound, most interbank rates firm

HONG KONG, July 3 (Reuters) - The following is a snapshot
of the Hong Kong foreign exchange and money markets in late
trade on Thursday.

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At 0913 GMT At 0358 GMT At 0848 GMT

HK$ SPOT HKD= 7.7986/88 7.7987/88 7.8000/03

FORWARDS

Three-month HKD3M= -130/-125 -132/-127 -139/-134

Six-month HKD6M= -204/-196 -205/-195 -213/-208

One-year HKD1Y= -295/-275 -295/-280 -320/-305

INTERBANK RATES (PERCENTAGE)

Overnight HKDOND= 0.37/0.50 1.00/1.20 1.00/1.10

Three-month HKD3MD= 2.30/2.32 2.27/2.32 2.25/2.30

Six-month HKD6MD= 2.62/2.65 2.60/2.65 2.57/2.62

One-year HKD1YD= 3.10/3.15 3.09/3.14 3.10/3.13

* For more live quotes for forwards and interbank rates,
click on FWEN.

* The Hong Kong dollar was trapped in a narrow range on
Thursday amid a decline in the domestic stock market and
weakness in the U.S. dollar.

The local currency HKD= was trading at 7.7986/88
against the U.S. dollar at 0913 GMT, slightly firmer than late
Wednesday trade in Asia, after shuffling between 7.7975 and
7.7993.

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

* Hong Kong stocks .HSI fell 2.13 percent on Thursday to
a 15 week low, losing about 800 points over two straight
sessions as financial stocks and insurers plunged on fears of
further credit tightening in China.

* The euro EUR= hit a two-month high against a broadly
struggling U.S. dollar on Thursday ahead of the European
Central Bank rate decision and a key U.S. jobs report.

* Hong Kong interbank rates were mostly firmer on Thursday,
except the volatile overnight rate, and one dealer at a local
bank said some market players were seeking four-day money due
in part to the fact that the U.S. market will be closed on
Friday for a holiday.

Some dealers also said recent stock market volatility had
raised fears of a possible capital outflow.

* The discount on Hong Kong dollar forwards narrowed as
some players adjusted their positions, one dealer said.

Local interbank rates and interest rate swaps (IRS) were
steady to higher, despite a fall in U.S. bond yields overnight,
the dealer said.

* Hong Kong retail sales in May rose 12.9 percent by value
from a year earlier, below forecasts and the slowest growth
since February as tourism slowed, government data showed on
Thursday. [nSEO0339901]

* Market players were awaiting the release of U.S. non-farm
payrolls report for June, due at 1230 GMT, for fresh trading
cues.

MARKET/ECONOMIC NEWS

> Stock market reports and updates: [.HK]

> U.S. dollar reports and updates: [USD/] [FRX/]

> Yuan reports and updates: [CNY/]

> Emerging Asia forex reports and updates: [EMRG/FRX]
(Reporting by Christina Lo; Editing by Tomasz Janowski)