The Hong Kong dollar eased against the US currency on Monday, reversing Friday's gains, after China's foreign exchange chief said its fixed currency policy will stay around for "a long time to come".
Guo Shuqing, head of the State Administration of Foreign Exchange, was also quoted by state media as saying that any Chinese firms that bet on a yuan appreciation will end up paying a heavy price.
The Hong Kong dollar rose sharply late on Friday amid a flurry of US dollar selling after reports that China plans to give the market a bigger role in setting the exchange rate for the yuan.
The HK dollar weakened to 7.7887/88 down from 7.7867/70 in late Asian trade on Friday, but clung to its recent range. It rose as high as 7.7833 on Friday.
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