The Hong Kong dollar pared some recent gains on Monday, with consolidation setting in after the currency hit a near 23-month high last week.
"There was some short-covering on the US dollar following its recent weakness against the Hong Kong dollar," said a dealer from a European bank.
The Hong Kong dollar has been supported in recent weeks by a steady inflow of funds for the highly anticipated listings of China Construction Bank at the end of October and the Link REIT planned for November. The local currency eased to 7.7569/73 per US dollar from 7.7549/51 in late Asian trade on Friday.