Short-term offshore dollar/yuan forwards up to one year were little changed in late trade on Friday, shrugging off a globally strengthening dollar because of lingering speculation in overseas markets about an imminent shift in China's currency policy.
One-year dollar/yuan NDFs inched up to 6.6650 late on Friday from Thursday's close of 6.6640, implying 12-month yuan appreciation of 2.44 percent versus 2.45 percent, as measured from the Chinese central bank's mid-point, or reference rate. One-month dollar/yuan NDFs were unchanged at 6.6970. But the 10-year dollar/yuan NDFs jumped to 5.9915 from Thursday's 5.8580 as their implied yuan appreciation in 10 years plunged to 13.95 percent from 16.55 percent.
One-year onshore forwards rose to 6.7268 from Thursday's 6.7148, theoretically implying 12-month yuan rise of 1.49 percent, less than Thursday's 1.67 percent. The spread between onshore and offshore yuan forwards widened to 618 pips in late Friday trade from 510 pips at Thursday's close and a one-year closing low of 210 pips a week ago. Spot yuan edged up to close at 6.8268 against the dollar from Thursday's close of 6.8278.
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