The Hong Kong dollar weakened to a 15-month low of 7.7698 against the US dollar as the repatriation of funds by some Chinese banks continued and lingering concern over tighter monetary policy in China damped the local stock market. "The repatriation of funds and concern over tighter monetary policy in China are still the factors pushing down the local currency and stocks markets," said a dealer at a regional bank.

"The Hong Kong dollar's next move will depend on the stock market. It could come down further if stocks continue to slide." The local currency was quoted at 7.7689/93 versus the US dollar having earlier hit 7.7698, the highest since October 9, 2008.

Copyright Reuters, 2010