Hong Kong dollar jumped as much as 0.13% to 7.7982 per US dollar on Thursday, crossing the 7.8 threshold.
The jump might be the result of the year-end regulatory checks on banks that typically sees higher demand for cash, which tighten liquidity.
The Hong Kong Monetary Authority said on Thursday that foreign exchange and money markets continue to operate smoothly and that the exchange rate remains stable.
The Hibor—one-month interbank funding costs for the HKD, have been higher than comparable rates on the greenback for 24 straight sessions as of Tuesday.
However, the currency might return to the weak half of the trading band of HK$7.7500 – HK$7.8500 after the year-end as there aren't any major drivers for strong inflows given the uncertainties arising from the current social unrest and the US-China trade war.