The Hong Kong dollar pared early gains on Tuesday afternoon but trading was confined to a narrow range, with dealers expected it to remain rangebound ahead of the next round of big share offering in November.

The local currency was trading at 7.7557/58 per US dollar, barely changed from 7.7558/59 in late Asian trade on Monday. It had firmed to 7.7544 in the morning trade.

One dealer from a European bank said there was some buying interest for the US dollar in the spot market, with some buying orders in the long-dated forwards in the afternoon. However, the USD/HKD spot rate met resistance at 7.7559.

Copyright Reuters, 2005