The currency climbed as much as 0.16% to 7.7855 versus the greenback Thursday. It pared the gain to 0.13% as of 9.29am local time. The Hong Kong dollar jumped into the strong half of its trading band this week for the first time since September.

The one-month interbank rate, also known as the Hibor, rose to the highest since October 2008 on Wednesday. Higher borrowing costs are undermining a once-popular trade to sell the Hong Kong dollar and buy the greenback that had pushed the city’s currency to the weak end of its trading band at 7.85 earlier this year.

Analysts have attributed the tighter liquidity to seasonal factors. They say companies are hoarding cash to pay quarterly dividends and the stock market will probably see at least two large share sales that may lock up funds. The tighter liquidity has coincided with demonstrations in Hong Kong.