The Hong Kong dollar gave up recent gains on Wednesday, weighed down by a firmer US dollar, dimming hopes of a near term Chinese yuan revaluation and a softening in short-dated money rates. The local currency weakened to a one-week low of 7.7845 per US dollar from 7.7786/87 in late Asian trading on Tuesday. "The US dollar rebound and fading expectations of a yuan revaluation soon have put pressure on Asian currencies. That prompted some players to cover short (US) dollar positions," said a dealer from a European bank.
Hong Kong dollar forwards were rangebound following the movement in spot rate, dealers said.