The yuan ended a notch firmer at 8.2764 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 3,750 points implying a rate of 7.903 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 8.10/9.10 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, a strong $1.21 billion on Thursday, was not immediately available.
The yuan softened to 7.8005 against 100 Japanese yen from 7.7824 on Thursday, and weakened against the euro to 10.6609 from 10.6116.
China's central bank drained 10 billion yuan ($1.2 billion) from the banking system in Thursday's open market operations, a gentle move to help the market digest last week's surprise interest rate hike.
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