HK dollar eases, interbank rates remain soft

HONG KONG, Jan 6 (Reuters) - The following is a snapshot of

the Hong Kong foreign exchange and money markets on Tuesday.

Morning Previous Close

At 0350 GMT At 0904 GMT

HK$ SPOT 7.7539/40 7.7526/29

FORWARDS

Three-month -45/-40 -43/-39

Six-month -65/-55 -59/-50

One-year -75/-60 -65/-55

INTERBANK RATES (PERCENTAGE)

Overnight 0.01/0.10 0.01/0.10

One-month 0.06/0.20 0.10/0.20

Three-month 0.80/0.90 0.80/0.90

Six-month 1.25/1.35 1.30/1.40

One-year 1.70/1.80 1.75/1.85

* For more live quotes for forwards and interbank rates,

click on.

* The Hong Kong dollar slipped further against the U.S.

dollar on Tuesday amid commercial demand for the U.S. currency,

while local interbank rates were steady to a touch lower due to

ample liquidity in the banking system.

* The local currency dropped to as low as 7.7549

against the U.S. dollar in offshore trade on Monday, its weakest

level since Nov. 26, Reuters data showed.

On Tuesday, the Hong Kong dollar hit a session low of

7.7542, down about 0.02 percent from late Monday trade in Asia.

One dealer said there has been some commercial buying of

the U.S. dollars in recent sessions for possible investment at

the start of the year.

Another dealer at a European bank attributed the fall in

part to the U.S. dollar's strength on global markets.

*The local currency is pegged at 7.8 to the U.S. dollar but

can trade between 7.75 and 7.85 to the U.S. dollar.

* In the interbank market, the three-month Hibor

was fixed at 0.89286 percent, slightly softer than 0.89571

percent on Monday, the lowest level since late January 2005.

The six-month to one-year rates were

down 5 basis points from Monday.

The aggregate balance -- a key measure of interbank

liquidity -- stood at a record HK$175.475 billion on Tuesday. The

balance was boosted after a series of interventions by the Hong

Kong Monetary Authority in the foreign exchange market in the

past few months aimed at keeping the Hong Kong dollar within its

pegged trading band.

* Hong Kong dollar forwards were trapped in a narrow range in

quiet trades, dealers said.

MARKET/ECONOMIC NEWS

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(Reporting by Christina Lo, Editing by Jacqueline Wong)

((christina.lo.reuters.com@reuters. net; +852 2843 6960; Reuters

Messaging:christina.lo.reuters.com@ reuters.net))

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