2012.05.24 10:23:01 MARKET TALK: USD/HKD Extends Losses; 7.7625 Support Tipped

0822 GMT [Dow Jones] The USD/HKD extends losses to 7.7636 vs 7.7662 late Wednesday in Asia amid growing demand for the local dollar, with local and foreign banks shifting their funds to the HKD from high-risk currencies such as the CNH (offshore CNY), says a senior trader at a Chinese bank. "The Hong Kong dollar is seen as a safe-haven currency when compared to other emerging market currencies like the renminbi," he says. Still, there are plenty of bids near 7.7625, which should provide solid support, he adds. The trader tips the pair to stay in a 7.7625-7.7645 band. (fiona.law@dowjones.com) Contact us in Singapore. 65 64154 140; MarketTalk@dowjones.com (END) Dow Jones Newswires May 24, 2012 04:23 ET (08:23 GMT)