The Hong Kong dollar pared some of its recent gains on Wednesday afternoon with consolidation setting in after the currency hit a 22-month high this week.
"It's just a correction after the recent rally and it might have been affected by US dollar strength against major currencies," said a dealer from a European bank.
The Hong Kong dollar eased to a session low of 7.7594 per US dollar before pulling back to 7.7590/92, down from 7.7577/80 in late Asian trade on Tuesday.
The Hong Kong dollar has been supported in recent weeks by a steady inflow of funds ahead of the highly anticipated IPOs from China Construction Bank and the Link REIT. The currency had firmed to 7.7555 to the US dollar on Tuesday morning, its highest point since November 19, 2003.
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