The Hong Kong dollar was slightly weaker on Wednesday as some arbitrage buying interest for the US currency re-emerged, dealers said.
"There was some bidding interest (in US dollars) at around HK$7.7980. However, volume was light," one trader from a local bank said.
The HK dollar weakened to 7.7986 per US dollar from the morning's 7.7982/84 and lower than 7.7979 hit in London trade on Tuesday.
US interest rates are higher than Hong Kong rates, enabling traders to earn an interest rate spread if they buy the US dollar in exchange for Hong Kong dollars.
However, some dealers see support for the local currency on continued improvement in HK economy, which is like to attract foreign investment inflows.
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