The Hong Kong dollar and interest rates softened on Thursday, as liquidity released by the territory’s currency board over the past week at last had its intended effect.

The territory’s currency weakened to HK$7.7567 against the greenback by 15:00 GMT on Thursday. On Wednesday, it was standing at HK$7.7498 to the US dollar, just before the Hong Kong Monetary Authority bought US dollars to defend the currency’s trading band. Meanwhile, the three-month Hong Kong dollar interbank rates, helped along by the US Federal Reserve’s 25 basis point cut on Wednesday, fell from 4.67 per cent to 4.28 per cent.