The Hong Kong dollar inched higher on Wednesday tracking other Asian currencies as the US dollar fell after weaker-than-expected consumer confidence data.
The local currency had firmed to 7.7541 per US dollar before trading back to 7.7544/46, up from 7.7557/58 in late Asian trade on Tuesday.
The US Conference Board on Tuesday reported the October consumer confidence fell to 85.0 from September's revised 87.5, and was well below analysts' forecasts for 88.1, which pressured the US dollar and stoked concerns soaring oil prices could slow the economy.
Hong Kong dollar forwards fell across the board amid talk of massive selling in short-dated contracts.
One trader from a local bank said there was some selling in the three-month forwards, pushing the forwards curve lower.
Three-month forwards were trading at a premium of 1/6 pips, down from Tuesday's close of 6/9 pips. The discount on one-year forwards widened to 65/45 pips from 55/40 pips.
Some dealers said interbank and forwards rates could soften further as the funds that were locked up by China Construction Bank's massive $8 billion IPO gradually return to the market. The stock debuts on Thursday.