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The yuan on Friday ended unchanged at 8.2764 per US dollar, near the stronger end of its managed trading range. A Beijing-based dealer said trading was normal with no unusual activity detected in the market. The one-year non-deliverable dollar forward discount versus the yuan stood at 4,250 points, implying a rate of 7.853 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 6.25/6.60 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, which was a moderate $1.13 billion on Thursday, was not immediately available. The yuan strengthened to 7.4329 per 100 Japanese yen from 7.5050, and firmed against the euro to 9.9562 from 10.0007.
China's central bank issued 20 billion yuan ($2.4 billion) in three-month bills on Thursday, unchanged from a week earlier.

Copyright Reuters, 2005

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