The Hong Kong dollar rose on Friday afternoon, tracking a rally in the Chinese yuan, on market rumours that Beijing would soon revalue its currency again. But the local currency gave up some gains after a denial from China's central bank that it was poised for an imminent yuan revaluation.
"There was a rumour early afternoon saying China would revalue the yuan by one percent tonight or at the G7 meeting," said a dealer from a Japanese bank.
The Hong Kong dollar strengthened to a near two-week high of 7.7686 US dollar before retreating slightly to 7.7689/94. It was still firmer than 7.7719/20 in late Asia trade on Thursday.