The Hong Kong dollar weakened to 7.7725 against the US dollar on a further outflow of funds and as the local stock market fell amid fears that China's strong economic growth will lead to a tightening of monetary policy. The strong data had fuelled concerns about inflationary pressures and assets bubbles.

"Tighter monetary policy (in China) is always a concern, while buying orders for the greenback during New York trading added pressure to the Hong Kong dollar," said a dealer at a local bank. "That suggested that an outflow of funds continued but in a slow pace."

Copyright Reuters, 2010