Hong Kong, Nov 18 (Reuters) - Hong Kong's central bank, the Hong Kong Monetary Authority (HKMA), on Wednesday afternoon injected HK$5.425 billion ($700 million) into the money market to stem an appreciating Hong Kong Dollar and keep it within its fixed trading band.
The Hong Kong Dollar repeatedly hit the top of its trading band at 7.7500 on Wednesday as money poured into the territory for initial public offerings in the stock market, dealers said.
According to data on Reuters page, the latest intervention will lift the aggregate balance -- the sum of balances on clearing accounts maintained by banks with the HKMA -- to a record HK$316.043 billion by Nov. 20.
The Hong Kong dollar is pegged at 7.80 to the U.S. dollar, but can trade between 7.75 and 7.85 to the U.S. dollar.
Under the linked exchange rate mechanism, the HKMA is obliged to intervene in the market to keep the trading band intact if the currency hits 7.75 or 7.85.
By 0630 GMT, it was quoted at 7.7500/01.
(Reporting by Christina Lo; Editing by Chris Lewis)
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