Chinese yuan notches firmer

07 Jan, 2004

The yuan closed two notches firmer versus the US dollar at 8.2770 on Tuesday, but was still near the stronger end of its managed trading range.
The one-year non-deliverable dollar forward discount versus the yuan was at 5,050 points implying a rate of 7.773 yuan per dollar in 12 months' time.
One-year implied yuan volatility was traded at 10.50/12.50 percent on Tuesday.
The yuan moves in a band of 8.2760 to 8.2800 enforced by the central bank.
Turnover, a moderate $500 million on Monday, was not immediately available. The yuan softened to 7.7926 against 100 Japanese yen from 7.7358, and weakened against the euro to 10.5000 from 10.4791.

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