An official at HKMA's New York Representative Office confirmed the transaction, the first such intervention since 2020, by phone.
The latest move by the HKMA came as a weaker US currency pushed its Hong Kong counterpart toward the strong end of its 7.75-7.85-per-dollar allowed trading range. Authorities have stepped into the market more recently to sell US dollars, including in 2022 and 2023, when the local currency threatened to breach the weak end of its trading band.
The HKMA intervention to limit the local dollar's rally comes at a time when other monetary authorities in the region contend with currency volatility. On Friday, the Taiwan central bank intervened in the foreign exchange markets as the Taiwan dollar surged 3% against the greenback, marking its largest one-day advance since 1988.
See also: Morgan Stanley sees US dollar falling 9% on slowing growth bets
The region's currencies strengthened on hopes for a possible trade talks with Washington, the first sign since President Donald Trump hiked tariffs last month that negotiations could begin between the two sides.
Trump's policies on trade have sent shock waves through financial markets and caused some to question the US currency's status as a safe haven. That's seen traders bet against the dollar and allocate funds away from the nation's assets after years of piling in.
The Bloomberg Dollar Spot Index, which measures the greenback against a basket of major currencies, endured its worst month since 2022 in April. It is down 6.5% so far this year.
See also: Goldman sees yuan reaching 7 per US dollar as trade talks progress
The Hong Kong dollar's peg was put in place in 1983 to arrest the plunge in the exchange rate amid talks about the handover of the British colony to China. The trading band was widened in 2005, allowing the currency to trade from 7.75 to 7.85 against the greenback.
The peg has held firm despite been repeatedly being targeted by speculative investors. Kyle Bass, founder of Hayman Capital Management, and Bill Ackman, chairman of hedge fund Pershing Square Capital Management, have both said they have wagered against the currency in recent years.
