But dealers said the local currency would likely remain rangebound and the upcoming IPO from the Link REIT, planned for November, would attract fund flows to the city.
The blue chip Hang Seng Index fell 0.59 percent and the Hang Seng China Enterprise Index was down 0.92 percent on Monday.
The local currency was trading at 7.7558/59 per US dollar, compared with 7.7566/68 in trade on Friday.
Dealers reported that the Hong Kong dollar hit a two-year high of 7.7505/10 per US dollar during thin trading in the offshore market on Friday. The European bank trader expected the local currency to trade in a range of 7.7535 and 7.7580 per US dollar in the near term.
Hong Kong interbank rates and forward rates were trapped in narrow ranges after a soft opening following a firmer local currency in New York trade on Friday.
The overnight interbank rate was steady at around 3.80 percent, while the one-month rate eased to 4.10/4.12 percent from Friday's close of 4.15/4.20 percent.