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The yuan closed one notch higher at 8.2765 per US dollar on Monday, near the stronger end of its managed trading range.
The one-year non-deliverable dollar forward discount versus the yuan was at 2,380 points implying a rate of 8.04 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 5.50/6.05 percent on Monday.
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.
The yuan rose to 7.5061 against 100 yen from Friday's 7.5400, and firmed against the euro to 9.9764 from 10.0719.

Copyright Reuters, 2004

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