The yuan ended one notch weaker 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 3,400 points, implying a rate of 7.938 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 5.60/6.75 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 came to $670 million on Monday, down a tad from Friday's $740 million. The yuan weakened to 7.8867 against 100 Japanese yen from 7.8433 on Friday, and softened against the euro to 10.9500 from 10.8494.
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