HKMA sells HK$2.325 bln to keep HK dlr in trading band

HONG KONG, Nov 6 - Hong Kong's central bank, the Hong Kong Monetary Authority, on Friday afternoon injected HK$2.325 billion into the money market to stem an appreciating Hong Kong dollar <HKD=> and keep it within its fixed trading band.

The Hong Kong dollar repeatedly hit the top of its trading band at 7.7500 on Friday as funds poured into the stock market, dealers said. Hong Kong assets look attractive given the territory's peg to a weak U.S. dollar.

According to data on Reuters page <HKMAOOC>, the latest intervention will lift the aggregate balance -- the sum of balances on clearing accounts maintained by banks with the HKMA -- to a HK$261.567 billion by Nov. 10.

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 0838 GMT, it was quoted at 7.7500/01. (Reporting by Christina Lo; writing by Susan Fenton; Editing by Ken Wills)