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The yuan on Thursday ended one notch weaker 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 edged higher to 4,800 points, implying a rate of 7.798 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 6.5/7.75 percent.
The yuan moves in a band of 8.2760 to 8.2800 enforced by the central bank.
Turnover, which amounted to a heavy $1.83 billion on Wednesday, was not immediately available. The yuan weakened to 7.3664 against 100 Japanese yen from 7.3105 on Wednesday, and softened versus the euro to 10.0641 from 9.9893.

Copyright Reuters, 2005

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