0458 GMT — The Hong Kong dollar may strengthen toward 7.8000 against USD, given HKD rates are likely to rise as the Fed approaches the end of its tightening cycle, says Ken Cheung, chief Asian FX strategist at Mizuho Bank, in an email. The coming quarter-end seasonality should keep short-tenor HKD rates elevated and the year-end liquidity squeeze should begin to lift the three-month HKD Hibor in October, the strategist adds, noting HKD interest-rate movements have been playing an important role in driving spot HKD. USD/HKD is little changed at 7.8169, according to FactSet. (ronnie.harui@wsj.com)