The Hong Kong dollar eased down from morning gains late on Monday, while interbank rates remained soft as liquidity improved. The local currency was trading at 7.7745/46 per US dollar versus 7.7720 earlier in the day and slightly weaker than 7.7740/41 in late Asian trading on Friday.
Some traders said the currency was likely to weaken gradually once the run of major China IPOs is over.
"The fund raising of (three) major IPOs is due to complete by the end of the month. Given that the next round of Chinese banks is expected to list in Hong Kong in the third or fourth quarter, I think some investors will now take profits and repatriate funds," one dealer from a European bank said.
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