The Hong Kong dollar weakened against the US dollar on Monday, at one point touching the lowest level in a week, amid arbitrage trading, dealers said.
The Hong Kong dollar exchange rate fell as low as 7.7599 per US dollar in early afternoon trade - its weakest level since February 24 - before trading at 7.7592/95 to the US dollar. The currency pair closed at 7.7588/90 on Friday.
One trader said the softness was due in part to lower short-dated money rates.
The overnight forwards was quoted at a discount of 1.8 pips in late afternoon trade, while the tomorrow/next forwards eased to a discount of 1.5 pips from Friday's close of 1 pip.
The overnight interbank rate eased to 3.50/3.60 from 3.70/3.80 late on Friday and down from 5.00 percent last Wednesday. The one-week rate was quoted at 3.84/3.86 percent, softening from Friday's close at 3.85/3.90 percent. The one-month rate fell three basis point to 4.03/4.05 percent from 4.03/4.08 percent late on Friday.
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