HONG KONG, Oct 15 (Reuters) - The Hong Kong Monetary Authority (HKMA) stepped into the currency market and sold HK$7.363 billion ($950.06 million) in Hong Kong dollars on Thursday afternoon as the local currency hit the strong end of its trading range.
According to the HKMA, the latest intervention will lift the aggregate balance - the sum of balances on clearing accounts maintained by banks with the authority - to HK$381.503 billion on Oct. 19, when the injected funds will be settled.
The Hong Kong dollar is pegged at 7.8 to the U.S. dollar, but can trade between 7.75 and 7.85. Under the currency peg, the HKMA is obliged to intervene when the Hong Kong dollar hits 7.75 or 7.85 to keep the band intact.
$1 = 7.7500 Hong Kong dollars Reporting by Christina Lo and Twinnie Siu; Editing by Richard Borsuk