ERM smooth says HKMA

The system, which the Hong Kong regulator uses to try and keep the Hong Kong dollar valued at around 7.80 to the US dollar, provided a stable monetary environment despite a "marked shift in market sentiment from extreme pessimism during the Sars [severe acute respiratory syndrome] outbreak to optimism in the later part of the year", officials said.

The report explained that the Hong Kong dollar exchange rate appreciated in late September, triggered by US dollar weakness and pressure for yuan