The yuan ended a notch softer at 8.2765 per US dollar on Tuesday, near the stronger end of its managed trading range. The one-year non-deliverable dollar forward discount versus the yuan was at 3,300 points, implying a rate of 7.948 yuan pper dollar in 12 months' time. China's forex market is closed from Wednesday February 9 until Tuesday, reopening next Wednesday. 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 at 5.75/6.90 percent.
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 lacklustre $470 million on Monday, was not immediately available. The yuan ended stronger at 7.8790 against 100 Japanese yen from 7.9343 on Monday, and firmed against the euro to end at 10.5620 from 10.6374.
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