The Hong Kong dollar inched higher against the US dollar on Friday on renewed speculation over a further appreciation of the Chinese yuan in the near term. "Speculative trades dominated the market, with some fund flows into the territory," one trader said.

Some dealers said the local currency was tracking the Chinese yuan, which hit a post-revaluation high on Friday.

US Treasury Secretary John Snow urged Chinese leaders to revalue the yuan currency again before a visit by US President George W. Bush to Beijing next month, the Financial Times reported on Friday.

China's yuan, which was revalued by 2.1 percent on July 21 to 8.11 per US dollar, closed at a record high 8.0840 on Friday.

The local currency was trading at 7.7531/32 per US dollar, strengthening from 7.7538/40 in late Asian trade.

Copyright Reuters, 2005