The Hong Kong dollar’s funding costs plunged the most since 2008, as the monetary authority’s intervention to defend the currency peg helped boost liquidity in the financial system.

The one-month Hong Kong Interbank Offered Rate declined 58 basis points to 3.08 percent on Wednesday, the most since 2008, according to Bloomberg calculations. Easing interest rates will help reduce the appeal of purchasing the Hong Kong dollar and moderate appreciation pressure.

READ MORE: HKMA: Short-term drop in HKD rate may help businesses, borrowers

The Hong Kong Monetary Authority (HKMA) stepped into the market to sell HK$129.4 billion ($16.7 billion) worth of local currency against the greenback in four intervention operations since Friday, after the Hong Kong dollar reached the strong end of its 7.75-7.85 per dollar trading band.

These operations are set to push up aggregate balance to HK$174.1 billion yuan on May 8. The measure of interbank liquidity was previously hovering near the lowest level since 2008, after the HKMA sold US dollars to defend the peg in recent years.

READ MORE: Hong Kong dollar tests strong end of trading band for second day

The Hong Kong dollar edged down to 7.7541 per dollar on Wednesday, further drifting away from the strong end of its trading band.