Hong Kong one-hundred dollar banknotes are arranged for a photograph in Hong Kong, Jan 20, 2016. (JUSTIN CHIN / BLOOMBERG)

The Hong Kong Monetary Authority (HKMA) intervened for a third straight day this week to defend its currency peg as the local dollar touched the strong end of its trading band.

The HKMA increased its bout of selling in the city’s currency to HK$3.37 billion (US$435 million) in the early hours of Thursday local time, according to its page on Bloomberg

The HKMA increased its bout of selling in the city’s currency to HK$3.37 billion (US$435 million) in the early hours of Thursday local time, according to its page on Bloomberg. The aggregate balance, a measure of interbank liquidity, will increase on April 24 to HK$66.8 billion.

The interventions in the market this week are the first time that the HKMA has defended the peg at the strong end since October 2015.

ALSO READ: Hong Kong's currency peg defense increases to US$760m

The Hong Kong dollar was little changed at 7.7502 per greenback as of 6:46 am local time. It has jumped 0.5 percent this year, the best gain among 31 major global exchange rates after the yen.

The recent currency strength was driven by carry trade players exploiting widening interest rate differentials. Higher local interest rates relative to the greenback have made buying the Hong Kong dollar an appealing trade in recent weeks, despite the dire economic pressures the city is facing.

READ MORE: HK dollar gains against the greenback driven by active carry trade

Fitch Ratings on Monday downgraded Hong Kong’s long-term, foreign currency debt to AA- from AA, predicting real gross domestic product to fall 5 percent this year after a 1.2 percent decline in 2019.