Chinese yuan notches higher

10 Jan, 2004

The yuan ended two notches higher versus the US dollar at 8.2770 on Friday, near the stronger end of its managed trading range.
The one-year non-deliverable dollar forward discount versus the yuan was at 4,300 points implying a rate of 7.848 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 9.75/10.50 percent on Friday.
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 rose to a decent $850 million from $710 million on Thursday. The yuan firmed against 100 Japanese yen to 7.6970 from 7.7908, but weakened against the euro to 10.5370 from 10.4300.

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