The Hong Kong dollar weakened slightly late on Tuesday after China's central bank said that any reform of the mainland's exchange rate would be based on the country's own needs. The comments from the People's Bank of China (PBOC) reiterated Beijing's stance that it would not bow to international pressure to revalue its yuan currency and the Hong Kong dollar eased to 7.7768/73 to the US dollar in late trade from 7.7760/61 in mid-morning and 7.7760/65 late on Monday.
The market has this week speculated that Beijing could widen the yuan's trading band as soon as next month, before President Hu Jintao visits the US in September.
Short-term interbank rates finished close to Monday's closing levels as the market awaited testimony from US Federal Reserve Chairman Alan Greenspan.
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