The yuan on Thursday ended unchanged at 8.2765 per US dollar, near the stronger end of its managed trading range. The one-year non-deliverable dollar forward discount versus the yuan stood at 4,230 points, implying a rate of 7.855 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 6.2/7.2 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 paltry $540 million on Wednesday, was not immediately available. The yuan strengthened to 7.3749 per 100 Japanese yen from 7.4108, and firmed against the euro to 9.8660 from 9.8673.
Comments
Comments are closed.