The Hong Kong dollar edged higher on Monday, buoyed by a rally in the stock market and the yuan's fresh post-revaluation high. The local currency was trading at 7.7775/77 to the US dollar, firmer than Friday's close of 7.7782/83.
"We've seen some two-way business in the market," one trader said. "The Hong Kong dollar was supported by fund flows for stocks, upcoming IPOs and a rise in the yuan, but interest-rate arbitrage limited the currency's advance."
The Hong Kong dollar swung between 7.7772 and 7.7780 during the day.