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The yuan ended two notches weaker at 8.2766 per US dollar on Friday, still near the stronger end of its managed trading range.
The one-year non-deliverable dollar forward discount versus the yuan was at 2,770 points implying a rate of 8.001 yuan per dollar in 12 months' time.
NDFs are a transaction where a forward price is agreed between a customer and a bank, but settlement on the value date is undertaken entirely in US dollars.
One-year implied yuan volatility was traded at 6.85/7.40 percent on Friday.
Implied volatility is a measure of how much the options market expects the price of the underlying asset to move during the life of the option.
The yuan moves in a band of 8.2760 to 8.2800 enforced by the central bank.
Turnover dipped to a heavy $1.35 billion from Thursday's $1.4 billion. The yuan weakened to 7.8190 against 100 Japanese yen from 7.7916 on Thursday, and softened against the euro to 10.5582 from 10.5365.
China's central bank drained 20 billion yuan ($2.4 billion) from the banking system in Thursday's open market operations by selling bills, down from last week's 40 billion yuan.

Copyright Reuters, 2004

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