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The Hong Kong dollar inched higher on Tuesday afternoon after a weak start to the day, with some investors covering Hong Kong dollar short positions ahead of the Lunar New Year holiday.
They say the outlook for the local currency remains firm on strong demand for Hong Kong assets and speculation China might soon widen its currency trading band.
Demand for Hong Kong assets was reflected by still strong fund flows into the local stock market despite the approaching holiday, which begins on Thursday.

Copyright Reuters, 2004

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