The Hong Kong dollar drifted lower against the US unit on Friday as investors continued to draw funds from the local currency in search of higher yields elsewhere.
The local currency weakened to 7.7994/95 per US dollar at 0824 GMT, down from 7.7985/87 in late Asian trade on Thursday.
Some dealers said the fall in the local currency was mainly due to renewed arbitrage activities, and was not related to the weakness in dollar/yen.
The yen tumbled against the US dollar on Friday after disappointing Japanese growth data. Asian currencies and the Hong Kong dollar often track yen movements.
The local currency has been pressured by large outflows of funds from the territory in the past weeks on arbitrage trades prompted by comparatively higher US interest rates.
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