The yuan ended two notches stronger versus the US dollar at 8.2770 on Tuesday, near the stronger end of its managed trading range.
The one-year non-deliverable dollar forward discount versus the yuan was at 1,750 points implying a rate of 8.103 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 6.15/7.10 percent on Tuesday.
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 fell to $330 million on Monday from $480 million on Friday.
The yuan firmed against 100 Japanese yuan to 7.2729 from Monday's 7.2824, but finished weaker against the euro at 9.9195 versus 9.8930.
Comments
Comments are closed.