Hong Kong dollar closes down

The Hong Kong dollar weakened slightly on Monday but pulled off lows after a modest rally for local stocks.
"There were some bidding interest for the US dollar in the spot and forwards markets in the morning session on short covering after last week's volatile trade," said a dealer from a European bank.
One senior trader from a local bank said he noted some Chinese banks were bidding aggressively for the US dollar in the morning session and said the move was due to typical month-end demand.
After shuffling between 7.7928 and 7.7946 throughout the day, the local currency traded at 7.7936/37 to the US dollar, still weaker than 7.7926/29 in late Asian trade on Friday.